The thought of handing over money to your bank for safe-keeping might not be all that appealing. You like to see the cash. You like to be able to get it out of the envelope and count it when you want. You like the idea of having it there at your fingertips if you find something to spend it on. However, opening a savings account can give you a safe and effective way to tuck your money away for a rainy day.
Start with a Bank
If you already have a checking account, set up your savings account in the same place. You can easily make deposits while you are depositing a check and you can usually transfer between the two accounts online. It doesn’t take much to start an account; usually anywhere from $25 and up, depending on the type of account you want. You’ll get an account number and deposit slips to get you started.
Set up Deposits
You can make a large deposit every once in a while or set up smaller deposits throughout the month or year. If you have the money automatically transferred each month, you won’t miss it. It will be gone and tucked away if you need it in the savings account. While the interest rate may not be anything to write home about, it will be gaining interest. This is preferable to the dust it might be collecting while hidden in your home.
There is so protection that comes with a savings account in a bank. Your deposits and accounts are insured. Someone can easily walk into your home and take money, even when hidden well. However, a bank provides you with security. You can trust that your money is safe.