How To Open A Savings Account?

Answer 1

In times when money is tight, it is important to make use of a savings account. It is definitely not uncommon for a person to live paycheck-to-paycheck and not have enough left over for a potential emergency. If you are in this particular situation, you may want to consider opening a savings account at your local bank so that you can save up some money for your future. Savings accounts are different than checking accounts because they allow you to build up interest as your cash sits in the bank. And while the interest rates for most banks are relatively low, this amount can add up over time the longer you have your money in there. And when compared to a checking account that yields nothing, the savings will at least give you a little back.

In order to open your new savings account, you will want to make a trip to your local bank. A friendly teller at the desk will be able to educate you on what that particular branch offers as far as savings accounts are concerned. You should always look for the bank that offers the highest interest rates. The higher the amount, the more money you will be able to earn each month. The things that you will want to keep away from are high banking fees. Many branches will charge their customers a fee when it comes to opening a savings. But many banks will overcharge their customers with the promise that their interest rate is the best out there. It always pays to shop and compare for the very best bank.

Once you have found a good bank and have a savings account under your name, it is time to begin depositing money into it. If you are on a tight budget, you may only want to start off by putting a little bit of money into the account each month or each time your employer gives you a paycheck. It is so important that you do not forget about your savings account and that you continue to deposit money into it for your future financial stability. You will be amazed at how much money you can save with this type of account.

Answer 2

One of the best ways to save money while you are in college is to open a savings account. Many college students use a savings account to help them manage their money, and to build a nest egg in case a financial emergency occurs. It is rather simple to open a savings account. In fact, by completing three easy steps, you can open an account in your name and begin saving money for the future.

Choose a Financial Institution

There are a variety of banks and credit unions that offer savings account products. National banks, such as Bank of America, Citibank, Chase and Wells Fargo offer savings account products; and these financial institutions are located in many cities throughout the Unites States. You may also choose to open a savings account with an institution that is near your college campus. In addition, may also open a savings account with an online bank, such as HSBC, ING DIRECT, or Ally Bank.

When comparing savings account products, be sure to pay close attention to important items, like interest rates, fees, benefits, perks, and requirements. The following are a few questions that you should ask the bank representative prior to opening a savings account:

• What are the requirements to open a savings account?
• What is the current interest rate on your savings account products?
• Is customer service available 24/7?
• Is there a monthly maintenance fee?
• Do you offer direct deposit?
• Is there a minimum balance requirement?
• Do you offer any incentives for new customers?
• Will my funds be FDIC Insured? (FDIC stands for Federal Deposit Insurance Corporation, and it means that your money is protected (up to the insurance limit) in case the financial institution fails or goes out of business.)

Complete the Application Process

Depending on which financial institution you choose to bank with, you may have the choice to open your savings account online, over the telephone with a bank representative, in person, or via the mail. Be prepared to provide your personal details on the application, including your full legal name, contact information, Social Security number, drivers license number (or government issued state identification number), date of birth, references, and information about your income. Once you complete your application, you can submit it to the financial institution. In some instances, applicants can find out immediately if their application was approved. However, it may take several days or so before you find out the status of your application.

Fund Your Account

Once your account is open, you can begin adding funds to your account. Try to set aside a portion of your income each pay period to deposit into your savings account. Keep in mind that the purpose of a savings account is to save money. So, try to avoid making regular withdrawals or purchases from your savings account. Also, consider using a checking account (or another payment method) to pay bills, rather than paying bills with your savings account.

Be sure to keep accurate records of your deposits and account activity. In addition, make sure you receive a monthly statement each month from your financial institution. You should always strive to keep your savings account in good standing at all times.