There are many ways in which you can start saving money. Having savings is crucial for improving your financial situation and health. When people want to save, they often think that the most convenient method is to just store their savings in whatever bank account they happen to have at the time. However, this is not true; knowing proper methods for saving can spare you a lot of trouble and confusion down the road. Keep reading to find out the best way to start building your savings.
What is a Savings Account?
Checking accounts are not the same as savings accounts and should not be used for savings. Storing your savings in your checking account is a bad idea for many reasons. An example is the fact that you may end up accidentally spending a portion of your savings because you forgot how much you saved. Savings accounts are a sort of safety gate between you and your savings because they come with monthly limitations on withdrawals. There are legal regulations that limit withdrawals from savings accounts to six per month.
Do you need a Savings Account?
Storing your money in a savings account comes with a number of benefits. The most obvious advantage is that by saving money in a savings account, you will cultivate and master the habit of saving. The end result is always being able to rely on your savings when you encounter challenging circumstances in life. Apart from this, when you take savings seriously, you are basically paying your future self and keeping to your long-term financial goals. Additionally, storing your savings in a savings account will pay interest, which means you get an additional percentage on the money you saved.
1. Northfield Bank : If you are looking for the best saving accounts that have a high yield and require only a small amount of cash to set you off, then the Northfield Bank should top your list.
Their platinum account is very user-friendly. The yield from your savings is high, generally around 2.25 percent of the principal amount. Moreover, the starting amount can be as low as $0.001. However, the bank charges $8 per month in account fees if your total account balance falls below $2,500.
2. Salem Five Direct : The online bank of the Salem Five Community Bank deserves a mention when you’re talking about the best savings account.
The APY rate for this saving account is pretty high. To be exact, 2.05 percent is a rate that few banks can offer. However, this account requires an opening amount of $100.
3. Citizens Bank : The online division of Citizens Bank, which was created ostensibly to provide better services to online customers and to ease the banking experience of savers, has been around for quite a while now. It’s also among the best online savings accounts you can have. Despite having no fees, the accounts need a deposit of $5,000 in order to start earning interest at 2.0 percent APY. However, if your balance falls below the benchmark amount, the interest will decrease to a paltry 0.25 percent. For this account, all your banking needs are sorted through their website.
4. Customers Bank : Essentially, this is an Ascent Money Markets savings account, and it offers one of the highest yield rates. For this account, you need a minimum deposit of $25,000 to start earning interest with rates 2.25 percent APY. Small amounts earn nothing at all. However, the Customers Bank, which is based in Wyoming, charges no monthly fees or fees for falling below the minimum balance either. It is worth the investment.
5. Marcus by Goldman Sachs : This is definitely among the best savings account you will find. It has all the hallmarks and characteristics of the seamless service that Goldman Sachs is known for. The bank’s investment in Marcus has certainly paid off. This account is a darling of many savers. For this account, there are no minimum deposit fees or transaction fees. You can withdraw your savings from anywhere in the world using wire transfer or electronic transfer, as long as you are connected to the internet. The yield rates stand at an impressive 1.85 percent.