Savings Accounts
"Take a dollar out of your wallet every day and put it
in an envelope. At the end of the month, deposit it into
your bank account. Now the process has begun, and you haven't
felt a thing."
- Lorayne Fiorillo, author of
Financial Fitness in 45 Days
A savings account is used primarily for:
- Emergency cash
- To help you save money for a long-term goal
- To provide overdraft protection in case you spend all
the money in your checking account--the two are electronically
linked so that your savings account will pay for any overcharges
- An ideal startup program to help a child learn to save
money (often allowing a lower minimum balance)
Savings accounts often feature:
- Low minimum balance requirements--around $50 to $100
- Low or no fees as long as you maintain a certain balance
- Limits on how many withdrawals you may take each month--to
encourage you to save instead of spend
- Transfer privileges between your checking and savings
accounts
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