A savings account, also known as a savings deposit account, is the simplest way to set aside money for your future needs – from a vacation to buying a home. Think of it like a piggy bank that pays you. Plus, savings accounts are one of the most secure ways to keep and grow your money.
Putting your money in a savings account usually lets your money work harder than if you left the same money in your everyday checking account. When you put your money in a savings account, the bank will pay you a higher interest rate than you'll make with most checking accounts, growing your money every year. This applies to both traditional and online savings accounts.
The best thing about a savings account is it lets you earn interest on money that you don't need for your daily or monthly expenses. It's also a handy way to put aside money that you'd like to keep for a long-term financial goal.
Money in a savings account is easy to access when you do need it. There's usually no waiting time for withdrawals and, unlike most Certificates of Deposit, there are no penalties for early withdrawal.
A major benefit of savings accounts with online and mobile banking, such as Citi savings accounts, is that most banks allow you to set up automatic deposits. This is a great way to steadily build up savings each month without having to think about it.
Some banks may have differing rules for transactions made at ATMs or teller windows in banks, so it's best to check with your financial institution about their specific rules.
If you're putting away more than a few hundred dollars a month, it may be worth seeking a higher return with a Certificate of Deposit, or a high-yield savings account. You can view Citi's savings products if you'd like to explore your options further.
Savings accounts can also be considered as rainy-day funds. As a rule of thumb, you should aim to keep three to six months of living expenses in a savings or other account where the money is easily accessible. To get started, aim for just $500 to $1,000. That's usually enough to start saving for something important, and it's also a nice reserve to have should you suddenly need cash.
You can easily open a savings account with Citi online, in branch, via our mobile app or over the phone.
Go to a bank branch or visit your bank online. Be sure to have at least one government–issued photo ID, like a driver's license or passport, and your Social Security number. Some banks may ask for proof of your home address, such as two recent utility bills, phone bills or rent receipts.
Most banks require that at least one account holder should be 18 years of age or older. Some banks have savings accounts a parent or guardian can share with a minor. Talk to your bank's branch manager about other savings products for minors.
Some savings accounts require a minimum deposit to open an account. Citi savings accounts require no minimum deposit to open an account. Many banks will waive the fees or minimum deposits on savings accounts if you also have a checking account with the same bank – with Citi, it's easy to link your Checking and Savings accounts to help meet minimum balance requirements.
You can deposit cash or checks into your account at a bank branch or an ATM. Checks can also be deposited by mail or by taking a picture of the check with the Citi Mobile Banking app. You can also move money from other accounts, such as your checking account, into your savings accounts. Most banks don't charge for this service.
Many employers who use direct deposit will let you split your paycheck between your checking account and your savings account, so the money you want to save never even enters your checking account.
Yes. Some people find it easier to save if they keep a separate account for each major savings goal – say a new home, a child, a vacation or an emergency fund. The advantage to having multiple savings accounts is that it's easier to track your progress toward your financial goals.
All Citi saving accounts are insured by the FDIC up to $250,000. Visit www.fdic.gov for more information
Besides the standard savings deposit account, most banks offer nearly a dozen other kinds of accounts in which you can save money:
The article content provides general information about banking products, however consumers should refer to the terms and conditions financial institutions provide for various products.
Here's a simple guide to the main types of accounts you can open at a bankRead More
A financial checkup can help you make sure you're taking the right steps and saving the right wayRead More
Build your savings today with CitiLearn More