If you want to be the master of your savings there are a few key ideas to keep in mind. You don’t want to just open any account, deposit some money and ignore it.
Just like a plant or a pet, if you don’t take care of it, the money won’t grow and you won’t get anything out of it. Whether you have a traditional savings or you have money tucked away in bonds, you want to be able to depend on this money if you need it in the future.
You may be saving for something special, for a rainy day, or even to have a little bit of security in the future. One way to guarantee that your money grows is to shop around for the best interest rate. Sometimes, online banks offer a better interest rate because they don’t have the overheads of a traditional bank; however, this is not always the case.
You can use websites that allow you to search for the best interest rate and you can start up a savings account there. Because the rates change based on the economy, when you notice a real change in the economy, you may want to search again to see if the rates have changed.
Don’t be afraid to move your savings over to a new location if they offer a better rate. You don’t want to make the move every couple of weeks, but there are times when it is worth changing everything for a better rate.
In order to help your money grow, avoid withdrawing any money. Every time you withdraw, you take away money that could potentially be earning interest. If you need cash for an emergency, you obviously will want to pull out some money.
However, if it isn’t an emergency, leave the money alone.
If you want to have that savings account continuing to get larger, you need to keep making deposits. The more often you deposit, the better off you will be. Even if you have smaller amounts deposited frequently, you can continue to see that account grow more and more.
If you aren’t the type of person to go back to the bank multiple times, you can set up automatic deposits from your checking account. You can set them up once a week, or several times a month.
You can also make deposits when you come into unexpected funds. From birthday presents to tax returns, tuck the money away and save, save, save. Don’t give yourself time to think about having the money in your possession. Take it straight to the bank and get it out of your hands.
Your savings will sit stagnant and never amount to much if you don’t keep your eyes on it. Become an active participant in your financial future and make sure that your money is working for you.
Be the master of your savings account by being watchful, shopping around for the best interest rates and moving your money when you need to.