Why You Need a Savings Account — And How to Choose the Right One
Why You Need a Savings Account — And How to Choose the Right One A savings account is a basic but essential financial tool that helps you grow your money while keeping it safe. Whether you're building an emergency fund or saving for a long-term goal, the right savings account can make all the difference. Key Benefits of a Savings Account Earn Interest: Your balance grows over time through interest, especially with high-yield savings accounts . Safety: Most accounts are FDIC insured up to $250,000, protecting your deposits. Emergency Savings: Keep funds separate from your spending to prepare for the unexpected. Financial Discipline: Having a dedicated savings account can discourage impulse spending. How to Choose the Best Account Look for competitive interest rates to maximize your earnings. Pick accounts with no monthly fees or minimum balance requirements — see options on Investopedia’s best savings accounts . Choose online banks like Ally or Ma...