1. Open, Manage, and Balance
Savings Accounts
Open, Manage, and Balance

2. Why have a savings account?
Having a savings account in a bank or other financial institution allows you to keep your money in a safe place and earn interest on it.

3. Types of Savings Accounts
Basic savings or passbook accounts allow you to make a minimum deposit, beginning as low as $5. These types of plans earn low interest rates, but you can easily withdraw or deposit funds.
Certificates of Deposit (CD) accounts earn a higher interest rate than a regular savings account, but you must make a larger minimum deposit—usually between $1,000 and $5,000. And, you must keep your money in the CD for a specified period of time. There is a penalty for early withdrawal.
Money Market Accounts earn a higher interest rate than a regular account, but you must make a larger minimum deposit—usually between $500 and $2,500. There is also a limit on the number of monthly withdrawals from this account.

4. How to open a savings account
Visit the financial institution of your choice and speak to a customer service agent about opening a savings account.
Bring:
Two forms of Identification (including one with a picture)
Social Security Number
Money for your first deposit (cash or check)
Be prepared to fill out information on a signature card that will remain on file at the bank. The bank uses the card to verify the signature on checks that bear your name. Signature cards typically include:
Your name
Current address and length of time at the address
Previous address and length of time at that address
Type of account (single, joint)
Your signature
Once your account is approved, make your first deposit.

5. Deposit and Withdrawal Slips
You may recall from the checking account lesson that deposit and withdrawal slips are written orders to your bank. Use these slips to put money in or take money out of your savings account.
Here's an example of a savings deposit slip:

6. Keeping track of your savings account
As you withdraw or make deposits, keep track of the amount of money remaining in your savings account.
Your bank or financial institution will send you a monthly statement or list of the various withdrawals and deposits made on your account. If you have an ATM card, you can also access this type of information at an ATM.
To help you keep a current record of your savings account, some banks issue a passbook.

7. Keeping track of your savings account
When your bank statement arrives, compare it with your passbook.
Figure out the amount of money you deposited, the amount you withdrew and the amount you have left.
If you bank online, you can also access and track your savings account information on line.
To earn the maximum interest on your savings, limit the amount of withdrawals you make from your savings account.