![]() ![]() While download speed is undoubtedly essential in figuring out what type of plan fits you best, it's not the only factor. Craving the speediest plan? Not so fast check all offers first CDs and Money Market accounts are best for saving money you don't plan to use for several months or years.2. Minimum balances range from zero to $2,500. Terms range from three months to five years, with longer terms paying the highest interest. Mainly, you can't withdraw the money in a CD for a certain period of time (called a "term") without a penalty. A certificate of deposit (CD) usually has the highest interest rate of all savings accounts, but also has more restrictions. ![]() You can usually access your money with a debit card and write checks from the account, but if your balance goes below the minimum, you'll be charged a fee. A money market account typically earns more interest than a regular savings account, but also has higher balance requirements, ranging from $500 to $10,000.A regular savings account is best for an emergency fund, because you want to be able to withdraw the money easily with no penalties. You can withdraw cash with a debit card and transfer funds into your checking account. A regular savings account earns the lowest interest but offers easy access to your money.Savings accounts have different interest rates, service fees, and rules, and some are better for long-term savings than others. ![]() ![]() Some financial experts suggest keeping your savings at a completely different bank, in an account not connected to your checking account or easily accessible with a debit card, so you are less likely to withdraw or transfer the money. The longer your money stays in the account earning interest, the faster it will grow. Make it difficult to access your savingsĬhances are, you will be tempted to rob your savings account for non-emergency purchases, but try not to. Some people open a separate savings account for each goal. For example, you might want to buy a new phone in six months, study abroad in two years, or start graduate school in six years. Once you've established your emergency fund, start to identify your goals and how long it will take you to reach them. While you might not be ready to start saving for retirement or a house, you will want to save for other things in college. Establish some short- and long-term savings goals Financial experts usually recommend putting aside up to three months of rent and expenses, but even one month is a good start. Your emergency fund will prevent you from charging unplanned purchases to a credit card and going into debt. Your first savings goal should be to set up your emergency fund to cover unexpected things like car repairs, medical bills, and the like. Then, set up an automatic transfer into a savings account so you won't be tempted to spend the money. Commit to saving a certain amount (even a few dollars) each month. Think of saving as another monthly bill you need to pay you're just paying yourself instead of someone else. (See SEC's compound interest calculator to see how compound interest works.) 2. Compound interest is when you earn interest on the money you've saved as well as on the interest you've earned. When you are young, you can take advantage of years of compound interest. Here are six strategies to help you start saving. But college is actually one of the best times to form responsible savings habits that will benefit you long after you graduate. Saving for your future in college-a time when you're likely to be taking out student loans and on a limited budget-may sound like an impossible feat. ![]()
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