FDIC Insured

When you open a saving account, you have a safe place to keep you money. Your money will be insured up to $100,000 per depositor by the FDIC. You will not lose your money even if the bank fails. This amount of insurance is effective as of December 31, 2009. Prior to that, it is $250,000 per person.

Access/Convenience

Even though your money is in the bank, you have access to it any time you want. You can access your money by going to one of the branch offices. Your money is also available to you by using an ATM card.

Compound Interest

You can earn interest on your money with a saving account. The earlier you start saving, the more you will experience the effects of compound interest. The balance in your account will grow because of the interest.

Options

Savings accounts can be the beginning of a disciplined saving regiment. Once your balance reaches higher levels, the money can be used to open up a CD or a money market account. These accounts pay more interest.

Custodian account

You can open a savings account for a minor child. You will become the custodian or legal adult on the account. Both you and your child can make deposits to the account. This will discipline you both about the need to save for retirement, an emergency cash fund or to make a major purchase.