Savings Accounts Made Simple

Maybe you want a new car, a computer, or money for the holidays. Maybe you want to have money for college, like me. Whatever your needs are, we all have one thing in common: we need money!

One of the latest trends in banking is a high interest savings account. Many financial institutions now provide savings accounts that yield five percent interest or more annually. Some of these accounts require large minimum deposits to open and even larger minimum balances to avoid monthly service fees. Others require little or no minimum deposit and refrain from charging fees to balances, no matter how big or small. Now is as good a time as any to open your own savings account for whatever your needs may be. Before you sign the dotted line or hit the submit button on that online application, you might want to familiarize yourself with the basics of savings accounts.

Savings vs. Money Market Accounts (MMAs)

Savings accounts are pretty simple: you open one, put your money in it, and earn interest on your balance. Money Market accounts (MMAs) work the same way, but they often yield higher interest rates than savings accounts. Because MMAs yield more interest, they usually require larger minimum deposits and balances (at least $1000). Recently, however, many MMA providers have minimized deposit and balance requirements to the savings accounts level, while maintaining high interest rates. Likewise, many savings accounts providers have begun to offer higher rates without increasing minimum requirements. So what does this mean to prospective savers? A plethora of savings options from which to choose await.

Interest Rates