Need To Save More Money? 3 Ways You Can Maximize Your Savings Account

Posted on: 19 October 2015

If you have any sort of expenses, such as a house payment, car payment, utility payments or even a grocery bill, you should strive to save money for a rainy day. Rainy days are those times when you may be between jobs or too sick to work. Having a little bit of money in the bank for times when you don't have any other money coming in could mean the difference between being able to keep your home and losing it through foreclosure.

Most financial experts recommend having at least three to six months worth of your total monthly budget put away in a liquid savings account. If your account falls short of the mark, don't worry. You can quickly grow your savings account even if you can only put away a small amount out of each check. Following are three ways you can maximize the amount of money that you have in your savings account. 

Handle Your Account the Smart Way

In order to grow, your savings account needs regular contributions from you. When you get your check, put away a percentage of it in your savings account immediately. If you have direct deposit, you can set it up so that a portion of your pay goes in your account every time you get paid. If you wait until you pay your bills to see what's left over, you will always find an excuse to keep the extra money. You should also avoid the temptation to withdraw money from your savings. Once it's there, treat your money like it's gone. Don't tap into it. 

Maximize Your Interest

On average, savings accounts draw interest at .07 percent. If you want a better interest rate, you have to shop for it. A great place to look is at credit unions and smaller banks. They tend to offer more rewards and higher interest rates. You may be able to earn an interest rate of up to 1 percent, maybe more if you select a high-yield savings account. These types of account are typically found at online banks.

Avoid Bank Fees

Some banks charge more fees than others, so it's vital that you understand what fees may be levied against your savings account at your particular bank. If at all possible, avoid incurring fees. If you can't, it may be time to find another bank that doesn't charge fees or one that doesn't charge the types of fees you tend to get charged. For example, some banks charge minimum balance fees. If you have a low savings balance, you can transfer it to an account that doesn't require a minimum balance to avoid fees.

For more information, contact Juniata Valley Bank or a similar location.