Opening a Savings Account

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What good are savings accounts?

Opening a Savings Account

Savings accounts are almost a right of passage into adulthood. Maybe when you were a kid, your parents tried to teach you about financial responsibility by having you deposit part of every dollar into your own savings account. Birthday money, Christmas checks... almost everything ended up getting deposited into that dreaded account. Maybe when you were 16, you were given access to the funds to buy a car, or later on to help pay for college. Either way, the goal is to teach that savings accounts help accumulate funds in two ways:

  1. Collecting money so that you don't spend it.
  2. Adding interest to the money as it accumulates.
But savings accounts aren't just useful educational tools for children--they're also great for the deposit of cash that needs to be made available quickly for emergencies for adults. Savings accounts offer a small amount of guaranteed return on the funds that are placed within them. You can open a savings account at almost any bank and don't need to make any sophisticated decisions. You should do some homework to compare the rates of the savings accounts offered by all your local banks so that you can be sure you open your account with the bank that has the best rate.

   

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