If you find yourself using your savings account more often
than you would like, then it is time to re-evaluate your
spending habits. In doing so, saving money should become a
breeze. To better reap the rewards of a savings account,
update your budget to get the most out of your savings and
become familiar with your banking options.
It may seem tedious and time consuming to keep track of
every dollar you make, but it is necessary when you are on
a tight financial rope. Click here for a budget worksheet
to help you get started. Remember that this worksheet is
only a template. You can create your own or just use a
notebook to journalize your spending.
Once you have figured out how much you can safely deposit
into a savings account, then your next step is to make the
most out of what is being offered by banks and/or credit
unions. Interest bearing savings accounts are offered with
most major banks, but are they really giving you the
highest yield possible?
One way to do some research on high interest yield savings
accounts is through the Internet. If you are computer
savvy, jump online and check out local banks as well as
IngDirect.com or EmigrantDirect.com. These two web-based
banking institutions typically offer higher yields with
their savings accounts (four to five times as much) then
the brick and mortar you will find locally. Linking up with
an existing bank account of your choice, the Internet based
banks will allow you to make deposits and withdraws as
often as you need to. You have complete access to your
money. It is no different than the conventional bank
account. You receive the same benefits, with the exception
that you do all of your banking through the Internet.
As with budgeting, when you put your money into a savings
account, it is a good idea to review your financial goals.
What do you have planned for the next 5, 10, or 15 years?
When you figure out an amount you wish to save, you can
safely make timely deposits into an account and watch your
money grow. This can be done through a regular savings
account, by purchasing a certificate of deposit or
committing to a retirement fund. Both of the Internet based
banks mentioned above offer higher yields of return for all
of these options. Because an Internet based bank does not
have the costs of a brick and mortar, their customers
benefit from greater returns on their investments.
Whenever you open a bank account you want to make sure that
it is benefiting you and not the financial institution.
First, be an informed consumer. Review the bank's history
and credentials. No matter the type of account you open,
you want to make sure it is free of monthly service fees
and that they do not require a minimum balance, in case you
need to withdraw more than anticipated. Lastly, pay
attention to the customer service you receive from the
start. This will give you an idea of the type of service
you will receive in the future. If you are not content,
take your money and business to another bank. Do not settle
for mediocre service. It is your money, invest it wisely!
The subject matter contained in our educational
publications is for informational purposes only. We suggest
that you consult your financial or other advisors when
planning for your specific needs or requirements
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Debt Management Credit Counseling Corp. ("DMCC") is a
501c(3) not-for-profit charitable organization located in
Deerfield Beach, Florida. DMCC provides free financial
educational materials, seminars and a financial literacy
program titled Debt, Money & Credit Concepts to consumers
across the United States. DMCC financial counselors can be
reached by calling 866-618-DEBT, emailing
debthelp@dmcconline.org, or by visiting
http://www.dmccorp.org .
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