Vote It Up When Opening a Savings Account

Opening a savings account can seem difficult, especially if it’s your first. With changing regulations that vary by bank, everyone has questions about how to deposit money and begin to accrue interest. We’re here to help you simplify the process and make opening a savings account easy. Our members have voted these questions among the most valuable when it comes to understanding your savings account.

5 Comments

  1. VoteItUp on February 22, 2016 at 4:37 pm

    What are the requirements to open a savings account?

    If you’re opening a savings account with the same bank as your checking account, the process will be relatively simple. Often, you can open the account online without visiting a branch. However, it may be a better idea to make an appointment with a banker and discuss all your options. There are different types of savings accounts, including high-yield accounts and those designed for youth. You will typically need your address, phone number, and birthdate, as well as a driver’s license or other ID, and your social security number.

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  2. VoteItUp on February 22, 2016 at 4:37 pm

    What are the minimum deposit and minimum balance requirements?

    The amount of money you need to start your savings account varies depending on your bank. It’s a good idea to ask your banker what the minimum possible deposit can be, because it’s often as little as $5. Many banks also require that you maintain a minimum account balance. Depending on the financial institution, failure to stay above this balance can jeopardize your ability to keep the account. Banks will sometimes waive monthly fees for a savings account with a high enough balance.

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  3. VoteItUp on February 22, 2016 at 4:37 pm

    What is the interest rate?

    Accruing interest is a big motivator for many people to open a savings account. The interest rate will depend on your bank, but usually savings accounts amass a very small amount — between %0.01 and %1. If you decide on a high-yield savings account, you can potentially earn more money. Of course, the amount of interest ultimately depends on how much money you keep in the account, and for how long.

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  4. VoteItUp on February 22, 2016 at 4:38 pm

    What does it mean when interest compounds?

    When interest compounds, the interest you have earned combines with the money you have in your savings account, and you begin earning interest on the larger amount. Some banks compound daily, and others compound weekly or annually. If you open a savings account with a bank that compounds daily, you have a better chance of earning more money. You also need to know how often interest is paid out, which is usually weekly or monthly.

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  5. VoteItUp on February 22, 2016 at 4:38 pm

    Is it easy to access money in your account?

    People open a savings account with the intention of saving their money, but nothing ever goes perfectly according to plan. There may be times when you need to access your savings quickly. Normally, you can withdraw from a savings account at an ATM machine the same way you withdraw from a checking account – you simply hit a different button! You should also be able to transfer funds between your checking and savings accounts online or in person. Many banks offer some form of overdraft protection, in which your savings funds will cover you when your checking is overdrawn.

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