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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Photo by Getty Images; Illustration by Orli Friedman/Bankrate May 11, 2021 Greg McBride, CFA, is Senior Vice President, Chief Financial Analyst, for Bankrate.com. He leads a team responsible for researching financial products, providing analysis, and advice on personal finance to a vast consumer audience. Lance Davis is the Vice President of Content for Bankrate. Lance leads a team responsible for creating educational content that guides people through the pivotal steps in their financial journey. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Opening a is a quick and easy process. In most cases, you can do it from your home. To make the process even easier, make sure you have all the documents and information needed to open a savings account. Checklist What you need to open a savings account
Before you compare accounts at different banks and credit unions, here’s what you’ll need for your application: Government-issued ID: A driver’s license or passport. Social Security Number: Some banks will accept an Individual Taxpayer Identification Number (ITIN) if you don’t have a Social Security number. Date of birth. Address. Contact information. Bank account information: Many banks will require an initial deposit, so have your account and routing number from your checking account. Things to consider when opening your savings account
Consider a few key factors to find a savings account that will fit your needs and help you grow your money. Deposit insurance
Look for financial institutions that offer deposit insurance. Banks should be insured through the , while credit unions are insured through the . Most institutions insure up to $250,000 in an individual savings account in the unlikely event that the institution fails. Interest rate
When you save, you pay yourself. Depending on where you open a , the bank or credit union will also pay you, too, with interest. We’re currently in a , so you aren’t going to earn a big return on your savings account. However, represent the best option for your earning potential. In fact, these banks without physical branches pay 25 to 50 times more than the savings rates at the biggest banks in the country. Think of it this way: You’re walking down the street, and you see a penny, a dime and a quarter. If you can only pick up one, it won’t be the penny. Features
You will likely have a range of saving needs. With that in mind, compare the functionality of different savings accounts. For example, some banks offer the convenience of creating sub-savings accounts that can make a big difference with your mental accounting. One sub-account might be named “vacation fund” while another is “tuition fund.” This can help you distinguish between saving for different purposes. Read to compare banks and some of the helpful features they offer. Expert advice How to maximize your savings account
Make putting money into your savings account part of a regular routine. Ask your employer to a portion of your regular paycheck into your savings account, or automate monthly transfers from your . Either way, you’ll benefit from a set-it-and-forget-it strategy that allows you to save without even thinking. If you’re young and start saving between 10 and 15 percent of your paychecks, you’re going to set yourself up for success in the long run. As your earnings increase over the course of your professional career, that 10 to 15 percent amount becomes more meaningful and allows you to save a significant chunk of money. It’s also important to identify unexpected opportunities to grow your savings. Those can be big chunks like a tax refund or a gift, or they can be as small as the money you save by using coupons. Anytime you wind up with some surprise cash, it’s time to think about how to put it away — instead of how to spend it. Finally, regularly re-evaluate your needs. Know that the base layer of your savings — your — should evolve, depending on your age. A buffer of six months of expenses will have a different number when you’re a single 20-something than when you’re 55 with kids in college. The target for your saving will always be moving. Make sure you’re adjusting your strategy to maintain the cushion you need to cover any unplanned costs. Greg McBride, CFA, is Bankrate’s chief financial analyst. As a , he is regularly quoted in the media for his in-depth commentary and practical advice to consumers. Learn more
SHARE: Greg McBride, CFA, is Senior Vice President, Chief Financial Analyst, for Bankrate.com. He leads a team responsible for researching financial products, providing analysis, and advice on personal finance to a vast consumer audience. Lance Davis is the Vice President of Content for Bankrate. Lance leads a team responsible for creating educational content that guides people through the pivotal steps in their financial journey. Related Articles