There is no reason why a person should not have a savings or money market account these days. Everybody needs to have such an account because savings is the only proven method of wealth building known.
Savings is more important than ever because of today’s economic turmoil. Nobody is safe from unemployment and pay cuts in today’s job market. This means that everybody needs to have at least some money saved up.
Most experts agree that the average person should have the equivalent of several months’ earnings in their savings. That way a person can get by without having to use credit cards. It also means that you will be able to meet expenses such as rent and mortgage payments for an extended period with no earnings.
This means that the average family should have a savings account. Fortunately it is easier than ever to open a savings account these days. Therefore there is no excuse for the average person not to be saving.
There are two excellent savings vehicles available to the average person: money market accounts and traditional savings accounts.
Every individual and family should have one or more of these preferably at different financial institutions.
Traditional Savings Accounts
If you have no savings or minimal savings you should consider a traditional savings account. This is the traditional passbook account many people open for their children. More high tech versions of this are available online. Use the table bellow to find the best savings account rates and click start saving.
Account Type
Amount
|
|
|
|
|
|
|
|
- Earn up to 1.80% APY
- $100 minimum deposit plus $100 minimum deposit per month
 
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
Rate
|
APY
|
Min. to
Earn APY
|
Compounding Method
|
Insurance
|
|
|
7
http://www.mortgagerefinance.com/Certificates-Of-Deposit
http://www.mortgagerefinance.com/Money-Market-Accounts
http://www.mortgagerefinance.com/Saving-Accounts
If you have a good credit rating you should be able to set one of these up in a few minutes online. A big advantage to modern savings account is that you can add money electronically online. You can also sign up for direct deposit which automatically puts money into your account from every paycheck.
A traditional savings account is a good way to start saving. It is also a great way to build up funds for a mortgage down payment or an emergency fund.
You should start saving right now even if you can only put a few dollars aside each week. Even if you just put $10 a week into a savings or money market that would be $520 a year. More importantly, even starting small can get you into the habit of saving.
Money Market Accounts
Families and individuals that can put more than a few thousand dollars into their savings should definitely consider opening a money market or high interest savings account. The advantage to these accounts is that they are insured by the FDIC but you can put up to $250,000 into them.
Use the table bellow to find the best money arket account rates and click start saving.
Since money markets are insured by the Federal Deposit Insurance Corporation there is little chance that you will loose your investment. That means they are perfect place to keep cash that you might need in an emergency.
As with savings accounts you can open a money market account online and start depositing money into it quickly. Transferring funds from an existing savings or checking account into a money market should be fairly easy.
More importantly the funds can be accessed quickly so you will have no problem tapping into them for bill payment or other emergencies. Money market accounts are also a great place to park extra funds you might want to use for investments. That way you can get the funds fast if you see a good opportunity you want to take advantage of.
There can be limits on the amount of funds you can take out of a money market. Some money markets don’t allow you to take out money quickly but the average person should be able to withdraw funds in a few days.
If you don’t have the funds right now you can save up using a traditional savings account and transfer the funds to a money market when you get a sufficient amount saved up. Anybody with more than $1,000 should be able to set up a money market.
Despite their limitations some money markets do come with such features as check cards and online access. That means you can have emergency access.
Some Really Good Money Markets
There are some really great money market accounts you can open online right now. Some of the best include:
- FNBO Direct: Money Magazine rated this bank as the “best place to park your emergency cash.” You can open one with as little as $10,000. Even those with a minimum investment earn the APY or higher interest rate.
- Ally Bank: This could be the best deal for the average family. The money market account comes with a free check card and online banking transactions. That way you can access the funds at any time. This would be the best account for those who think they will need to tap into emergency cash.
- EverBank: New customers who deposit more than $50,000 will get a higher bonus interest rate of 2.01% for the first three months. It also has a slightly higher APY of 1.11%.
- Zions Bank: This institution also offers a slightly higher than average APY of 1.11%. It also allows online access to accounts.
Have Both
If you have the funds you should consider setting up both an ordinary savings account and a money market. That way you can have two additional sources of funds available.
A good way to manage both would be to check the savings periodically and when it reaches a certain level such as $1,000 move a large portion of the savings into the money market. That way you can a few hundred dollars in extra cash available for day to day expenses and a large pool of funds available for emergencies or investments.