Comparing savings account providers can provide consumers with higher annual percentage yields and fewer banking fees. Establishing a savings routine can help consumers reach financial goals and provide peace of mind knowing money is available if unexpected expenses or investment opportunities arise.
Establishing a savings account can be challenging for people struggling to make ends meet. However, most people have more money than they realize. Individuals who feel they cannot afford to contribute to a savings account should take time to review expenses and determine where money is spent.
Before comparing savings account providers it is important to develop a savings plan. Financial expert, Suze Orman recommends setting aside a minimum of 10-percent of income. She also suggests viewing savings contributions as a monthly bill. Saving for the future is just as important as paying monthly bills.
The easiest way to develop a savings plan is by establishing a household budget. Many people consider developing budgets an unwanted chore, but taking time to review personal finances and establish financial goals can be extremely rewarding.
In today’s economy being frugal is chic and can lead to financial freedom. The Internet provides easy access to personal finance websites which offer wealth-building strategies. Learning how to save money allows individuals the opportunity to achieve short- and long-term goals.
Once individuals determine how much money they can contribute toward savings, it is time to scout out savings account providers. Spending an hour online can help consumers obtain the best interest rate and reduce banking fees.
One trusted source for comparing nationwide financial institutions is Bank Rate. Consumers can compare interest rates, opening deposit and minimum balance requirements, and transaction and account management fees.
In order to obtain the highest return on investment, consumers should seek out savings providers that compound interest daily. According to BankRate, high yield savings accounts earn around 1.4 percent while traditional savings accounts earn.62 percent. Taking time to comparison shop can help individuals’ double earned interest.
Consumers should also look for hidden fees such as ATM transactions and obtaining paper bank statements. Many banks assess fees when consumers’ balances fall below minimum requirements or exceed monthly cash withdraw limits. Transactions fees can quickly deplete earned interest and cost consumers more than they earn.
Individuals unable to meet the recommended savings contribution of 10-percent should commit to depositing as much as possible. Most people can save at least $5 or $10 per week. Saving a little is better than not saving at all. As saved funds grow, chances are individuals will find ways to contribute additional funds. When possible, establish automatic transfers from your checking account.
Not having a financial safety net in place leads to stress and anxiety when cash emergencies arise. Individuals who do not set aside funds miss out on investment opportunities which could allow them to double or triple their money. People who want to buy a house, attend college, or make home improvements won’t be able to afford things which could improve their life because they failed to plan for the future.
Individuals who put off saving now will find it difficult to get ahead in the future. Today is the day to take control of personal finances. Start by opening a high interest savings account which can help your money grow and provide funds when you most need them.