If you want to have a well-rounded savings plan, you will need to know how to open a savings account. Since there are several options, it might seem confusing regarding which one to select. However, the process itself is not complicated. This article will assist in outlining the steps necessary to open a savings account.

Many people are under the impression that savings accounts are offered by banks and only banks.http://www.bankofamerica.com/deposits/checksave/index.cfm?template=save_overview&context=&statecheck=CA&cd_bag=&sa_bag=&ch_bag= This is not so. One prime example of an exception is a credit union. Doing a little research on your own will help prepare you to go to your financial institution of choice and feel confident when you sit across the desk from the employee who will be helping you. Do not hesitate to ask questions. If there are no answers forthcoming, that signals a problem. The personnel in charge of "new accounts" should not only answer all your questions, they should also let you know if they offer more than one "product." That is, more than one type of savings account.

On your end, be well prepared with some personal documentation (driver's license, social security number, check book) and take it with you. If you follow the steps provided here, opening a savings account should be a swift and hassle-free process.

One of the most basic tools that you can use to help manage and further your savings goals is, of course, a savings account. Not only do savings accounts provide a safe, secure and convenient place for you to store the money you're putting into the account, they can also (in certain instances) help build your savings with interest. If you don't have a savings account, and you want one, it may be the perfect time to set one up. If you already have a savings account, keep reading to make sure that you have the right one to meet your needs.

Besides the security that comes from keeping your money in a large, federally-insured lending institution (FDIC), the other main benefit of a savings account is the interest that you can collect on the money you have in the account. The bank (or other) will calculate your balance on a consistent basis and add interest money to the account. People often wonder why they are willing to do this. Here's how it works.

For the privilege of using your money to lend to others (while you are saving it but not using it yourself), banks will pay you a percentage of interest on the money that you choose to keep with them. For instance, if your interest rate is 1% and you have $1,000 in your account, then you will earn $10 each year that you have your money in the account. This is based on the bank doing their calculations only once a year. It is usually more frequent - such as per annual quarter. Be sure to ask the employee questions regarding minimum balance requirements and the current interest rate they are offering on savings accounts.http://www.consumerismcommentary.com/rates/

While this $10 example may not seem like a lot, the more money that you keep in your account and the higher the rate of interest that you receive, the more money that you will add to your account. The interest rate that you receive will depend on the bank you choose as well as the type of savings account you open.

Before you open an account, be properly prepared. When you go to "interview" the bank, bring with you your driver's license and as a safeguard, your social security number. If you have an existing account at a bank, such as a checking account, you may want to start with that bank and see what their savings account options are. You are likely to be more comfortable in a familiar setting if you are acquainted with the bank tellers and the bank itself.

• Choosing the right bank is much like choosing any other service provider. Never lose sight of the fact that you are the customer. You are looking for a lender that offers the right combination of services to meet your individual needs, plus competitive rates to ensure that your money is being as productive as possible. Here are a few things that you should consider when choosing which bank to open a savings account with:

• 1. Accessibility: Since banking is an integral part of your everyday life, you will want to choose a bank that is accessible. Choosing a bank that has a bank branch near where you live and work will make using and maintaining your savings account much more convenient.https://www.wellsfargo.com/locator/
  2. Services Offered: Not all banks offer the same types of savings accounts. When researching potential banks, make sure to find out if they offer the specific type of savings account that you are interested in. Investigate your options.
  3. Customer Service: While you may not need to interact with bank personnel directly every time you use your savings account, you may need to rely on their customer service personnel at some point. When inquiring about a savings account at different banks, take note of how friendly, knowledgeable, and helpful their staff is.
  4. Interest Rates: Different banks will offer different interest rates for their savings accounts, so it's always a good idea to compare the interest rates that each bank offers for the different types of savings accounts.

• • An alternative to opening a savings account with a traditional bank is to open one with a credit union.http://www.usatoday.com/money/perfi/columnist/block/2008-03-31-savings-rates-credit-unions_N.htm Credit unions differ from banks in that they are usually non-profit institutions that serve a specific segment of the population (i.e. "Teacher's Credit Union" or "State Employees Credit Union"). If you qualify to be a part of one of these credit unions, it is a good idea to research the rates and other benefits they offer. If you are not sure if you are eligible to join one particular credit union, it might be a good idea to visit one, determine your eligibility and if you need to find one that you can join, ask for suggestions. Some credit unions serve a very wide population, not just a specific profession, and you may be eligible to join one you otherwise might not consider. Ask for a referral.

• Not all savings accounts are created equal. Here are some of the most common types of savings accounts:

• Basic Savings Account: This is the most basic type of savings account that banks will usually offer. People can deposit and withdraw money from their account, the balance of which usually earns a minimal rate of interest (usually around 0.5 - 1% yearly, but do check the current rates...they fluctuate). Most savings account do not allow check writing privileges. Check to see if your bank allows it. Most banks allow ATM withdrawals from savings accounts by selecting the savings button.
• High Yield Savings Account: High yield savings accounts usually offer better interest rates than regular or basic savings accounts, but come with more restrictions. Most high yield savings accounts have a minimum balance requirement and limit the amount of transactions that you can make each month. If you have enough money in other accounts and don't see yourself needing to take money out of your savings account on a regular basis, this can be a good option.
• Money Market Account: In general, money market accounts usually pay a higher interest rate than regular savings accounts and often give you a higher rate for a higher balance. But they carry many of the same restrictions as a high-yield savings account. They do, however, usually offer you the ability to write checks if you want.http://www.getrichslowly.org/blog/2009/07/07/an-introduction-to-money-market-accounts/
• Online Savings Account: With the emergence of online banking, many institutions have begun to offer high-interest online savings accounts.http://www.nationwide.com/online-savings-account.jsp The reason that these institutions can afford higher interest rates is because, since all of your banking is done online, they usually don't have to pay some of the high overhead costs associated with operating actual brick-and-mortar bank branches. Companies such as ING and HSBC Direct can help your money grow even faster than with a traditional savings account.http://home.ingdirect.com/open/open.asp But as is the case with all innovative online products, be certain to read every word of the agreement before you sign up.

1. Minimum Balance Requirements: Some savings accounts require you to keep a minimum balance in your account at all times and will penalize you if you fall below that amount. Make sure that, if your account does require a minimum balance, you have enough money to meet that balance on a continuing basis.

2. Monthly Fees: Banks will sometimes charge a small monthly fee for you to have a savings account, although most will waive that fee if you keep up a minimum balance. You will also want to find out if they charge extra for withdrawals, transfers or other transactions.

3. Interest Rates: As discussed above, the interest rates that are offered by different savings accounts can vary widely. Make sure to research different banks to find the best interest rates.

4. Access to Your Money: Banks have different rules when it comes to how you can access the money in your savings account. While most don't allow you to write checks with a savings account, some may allow you access to make withdrawals via a debit or ATM card. Online banks that don't have any physical branches often require you to transfer money back into your checking account before you can access it (which usually involves waiting a few days for processing). When choosing an account, make sure to consider how often you may need to access your money.

• Being able to successfully save money is one of the keys to establishing your financial stability, and opening a saving account is one of the best ways to do this. Whether you're a high-school student looking to open your first savings account or a retiree wanting to get the most out of your savings, spending time to find the right savings account for your needs is extremely important. So, get all the information you can, open up a savings account, and start saving!