Savings Account

A savings account is when you keep your money in a bank or credit union and earn interest. Interest is the money the bank pays you for keeping your money there.

A savings account is a safe, convenient and affordable way to save your money. It's much safer to keep your money at a bank than to keep a large amount of cash in your home. When you put your money in a bank, the bank keeps it in a fireproof locked safe. The federal government also insures your money. No matter what, you can't lose your money when it's in the bank.

Banks pay you a fee, called interest, for keeping your money with them. The higher the interest rate, the more money you'll earn. And, the more money you put into your account, the more money you'll earn in interest. Automatically transferring money from your checking account to a savings account each payday makes paying yourself automatically much easier.


Before choosing bank ask these questions!

Is the institution insured?

What is the dividend/interest rate?

What’s the annual percentage yield (APY)?

Does the institution offer tiered rates? If so, how are they applied?

How often is interest compounded?

What is the minimum balance required?

Is there a charge if my account falls below a minimum balance?

Is there a fee for closing the account?

Is there a monthly maintenance fee?

Am I required to use direct deposit in order to get a free account or reduced fees?

Is there a limit on the dollar amount or number of transactions I can make?

Are there any other fees or charges for the account? If so, what are they?