Saving money is always positive, even if it is a small amount of money. Make it a habit to save a percentage of each paycheck and watch the savings begin to grow. Set goals for yourself, try to save a certain amount of money each month (or year). If you have the ability to have money automatically deposited from your checking to your savings account; this is a great way to save money without having to move the money yourself. Out of sight and out of mind.
To determine the savings option that best fits your needs, consider the following:
• Is there a minimum deposit required to open the account? If so, how much?
• Is there a minimum monthly balance to maintain to prevent unnecessary fees? If so, how much?
• What is the interest rate?
• How frequently is the interest compounded? (the more frequent the compounding, the better the return on your savings).
• Can funds be withdrawn without penalty or loss of interest?
• What fees apply to the account?