Start building wealth and financial stability by setting money aside with a savings account. When you open a savings account, you’re making an investment in your future. You’ll also find that saving money is much easier. Before you dive into real estate, stocks, and other complicated investment vehicles, consider the benefits of this personal banking solution.

Why You Should Open a Savings Account

1. Separates Your Money

It can be difficult to save when all of your money is held in one place. When your savings is kept in a checking account, you’ll be more likely to spend the extra funds without noticing.

A savings account gives you a dedicated space to set your money aside. You’ll only be able to withdraw it with a separate check or personal banking card once it’s deposited. This will force you to be more aware of the money you’re taking out since it requires different steps than using your checking account.

2. It Earns a Return

An effective savings plan should make you money over the years. When you open a savings account, the bank will reward you with a yearly return based on an established interest rate. The national average is 0.06%, though it can go as high as 2%. This means that for every dollar saved, you’re getting back a fraction as a thank you for storing your money with that bank.

3. It’s Low-Risk

The problem with stocks, real estate, bonds, and other investing tools is that they’re risky. A market crash could quickly diminish your savings, and you may even end up losing money on the initial investment.

Savings accounts are far less risky. Banks rarely lower their interest rates, and chances are better that they’ll increase them in the future. This means that even during a recession, you’ll be making money off your savings.

4. Allows for Automatic Transfers

Auto-transfer is one of the best personal banking tools. This allows you to program a certain amount of money to transfer from your checking account to your savings account as often as you’d like. This is an easy way to save without having to think about it.

Program a weekly or monthly transfer, depending on your means. Consider scheduling a transfer on payday so a portion of each paycheck goes directly into savings. This way, you won’t have to worry about remembering to handle the deposits yourself.

If you’re interested in opening a savings account, trust Citizens Bank in Byhalia, MS. They’ve served the areas since 1919, and offer personal banking, savings, and financing solutions to individuals and business customers. Whether you’re interested in opening an account or securing a loan, call (662) 838-2146 to speak with a banker. Learn more about their services online.