Best Savings Account for 2014

Whether you need to save money for a costly expense or for retirement, opening a personal savings account is a great way to meet financial goals. People should get in the habit of saving money to prepare for unexpected circumstances. Unforeseen setbacks such as loss of employment or long term illness can create financial burdens that are difficult to overcome. There are a variety of personal savings options from customers to choose from. Discover the different saving options available for customers to determine which plan is right for your financial needs.

Custodial Savings Accounts

Custodial savings accounts are ideal for parents interested in saving money for their children. Many parents open custodial accounts shortly after their child is born. The money saved in a custodial account can later be used to pay for education or an expensive item such as an automobile. The custodian will have access to the account to manage funds and will be responsible for distributing the funds to the minor when they reach legal age. Opening a custodial account only requires a minimum deposit of $25. Custodians can link the custodial account to their checking account, which makes it easier for transferring money. Account holders are allowed to withdraw money a few times a month without being charged a fee. Custodial savings account have a small monthly fee, but those fees can usually be waived if the account holder meets certain conditions such as maintaining a monthly balance or making automatic transfers from a checking account.

Regular Savings Account

savings account 2014Regular savings accounts are great for people new to banking or for someone who just needs a basic savings account. An advantage of a regular savings account is the low minimum opening deposit of just $25. Customers can link their savings account to their checking account to allow for convenient money transfers. Linking accounts also provides customers with overdraft protection in the event their account reaches a negative balance. Customers are usually allowed to withdraw money from the account a few times a month without paying a fee. A small monthly fee is charged for regular savings accounts, but that fee is usually waived if the customer maintains a minimum balance or sets up a monthly automatic transfer.

Personal Money Market Savings Accounts

Money market savings accounts are an excellent option for customers looking to incur interest on their money as their balance grows. The interest rate increases when the balance increases to the next rate tier. A tiered interest savings rate is even available for low balances. A money market savings account can be linked to your checking account to make it easier to transfer money. Customers who link their accounts are eligible for overdraft protection in the event their checking account reaches a negative balance. Money market savings accounts can be opened with a small deposit of only $25. A small monthly fee is associated with money market savings accounts, but the fee is usually waived if the customer maintains a minimum balance or links with another account. Many banks allow the customer to make unlimited withdraws, deposits, and transfer with these kind of accounts.

High Yield Savings Accounts

High yield savings accounts with premium interest rates. These accounts give customers access to their accounts and even lets them write checks from their savings account. These savings accounts can be linked to their checking account to make it easy to make transfers. Linking accounts also provides overdraft protection in the event that their checking account balance reaches a negative amount. Unlike regular and money market accounts, high yield savings accounts usually require a high minimum opening deposit. A small monthly fee is charged for these types of accounts, but the fee is usually waived if the customer maintains a minimum balance. An advantage of having a high yield savings account is secure online access. Customers can access their accounts from a personal computer or mobile banking application.

It’s important for people to create a savings plan to prepare for unexpected circumstances. The loss of a job or expensive hospital bills can create financial burdens that are difficult to overcome. Parents can begin saving for their children by opening a custodial savings account. Parents will have authority over the accounts and be responsible for distrusting funds to their children when they become of age. Regular savings accounts are ideal for people new to banking or just needing a basic account. A personal money market savings account is great for people looking on incur interest on their money as their balances increase. High yield savings accounts offer customers premium interest rates so their money can grow at a faster rate.