February 24, 2020

Increase Your Savings Account in Five Easy Ways

Best Savings AccountsThere are many reasons why people put money into savings. Maybe they are preparing for a large purchase in the near future, maybe they want the security of an emergency fund, or maybe they have goals of building long-term financial security. Whatever the reason, the most common place that people save money is, as its name would suggest, a savings account at a bank or credit union. Of course opening an account is just the first part, and there are many things people need to be doing to ensure that their money is safe and that their accounting is benefiting their savings. Here are five ways to take control of your personal finances and guarantee that your savings will increase!

Keep Tabs on Spending

For most people the only way they can save more is by spending less. A lot of us make a lot of small purchases throughout the week without realizing how those purchases are building up. Keeping a close eye on how and where you are spending your money is a great way to cut out needless spending. There are a lot of banks and financial websites that have resources and tools for you to track your monthly spending, encouraging you to take greater control. Create a monthly budget and see how well your expenses are lining up with it.

Save Automatically

For a lot of people it is hard to get into the habit of saving money. And if you aren’t in the habit of putting money into savings regularly, how are you ever going to save a significant amount? One great idea to jump start your saving is by having money automatically deposited into your savings account on a regular basis. You can do this in two ways. One way is to set up your checking account to automatically send a fixed amount of funds over to your savings each month. Another way is through an automatic savings system that some banks offer. The way this works is every time you use the debit card from your checking account, the bank switches a small amount of money from your checking to your savings. This is a great way to be saving money even while you spend it.

Limit Your Withdrawal Amount

Though you can deposit and withdraw funds to and from a checking account an unlimited amount of times a month, the same is not so with a savings account. You can deposit as often as you’d like, but there are restrictions on the number of times you can transfer or withdraw money in a month. Going over this limit will incur a penalty on your account. The amount of the penalty will vary from bank to bank, but with such low interest on the account these types of penalties could be devastating to accrued interest.

Monitor Your Balance

Many banks are changing their terms and conditions along with shifting financial regulations. To keep themselves from unpleasant surprises account holders should keep an eye on the terms of their account. For instance, the minimum balance required in the account might go up, and some people may not be able to afford this increase and dipping below the minimum will incur fees. Thankfully technology is allowing people to keep closer tabs on their bank accounts. People can opt to get email or text alerts when anything changes with their account, and there are also smartphone and tablet apps that will help them with monitoring.

Take Advantage of Overdraft Protection

Increase Money in Savings AccountOne place where people incur large fees is from overdraft charges on their checking account. And one great way to lessen these fees is by having a savings account at the same bank where you have your checking account. Linking up your savings and checking accounts is an inexpensive method of overdraft protection. It works because instead of having to borrow from the bank in an overdraft incident you can just switch over the necessary funds from your savings account. Not all banks will automatically link up your accounts for you, so this is something you will need to look into and ask about yourself. Just know that the added effort is worth the protection is provides.