Six expert tips to achieve more from your savings account and secure your financial goals

A savings account is the most basic financial instrument for the ordinary man, yet it is also one of the most powerful. Moreover, the government’s friendly policies have made savings accounts more attractive. Whether for retirement, contingency or as an emergency fund, a savings account has many benefits.

Why a savings account is indispensable for all

Savings accounts provide a simple and secure way to achieve your financial goals, handle unexpected costs, and increase your wealth. They form the bedrock of a stable financial future apart from being a key aspect of prudent financial management. Your savings account is essential for maintaining your financial well-being for many important reasons.

However, opening and maintaining a savings account has more to it than meets the eye. With a bevy of unique features in each savings account from different lenders, you need expert guidance to choose the best savings account for you. Several factors need to be considered like interest rates, minimum balance, ATM access fees etc, before zeroing in on a particular savings account.

Here are six expert tips to choose and manage your savings account:

Go for the right account:

Before opening a savings account do a little research on various banks and the benefits each has to offer. Whether it is interest rates, minimum balance maintenance or ATM handling charges, you must consider all such factors before choosing the bank. If you have a higher balance in your savings account, some accounts might provide better interest rates.

Set realistic goals

If your goals are quantifiable they are also achievable more easily. Set realistic and smart goals so that you stay motivated to regularly put money into your savings account. You will also have a clear vision of how much you need to save to achieve your financial goal.

Automate your savings

This is a very important step in your savings and financial journey. Always automate transfers from your checking account to your savings account. This ‘pay yourself first’ strategy will help you grow your corpus into something really big without putting in extra effort. Every millionaire swears by this simple technique that helped them multiply their wealth over the years.

Restrain withdrawals

Tie your savings with goals rather than regular expenditures. Make it goal-oriented where there are minimum or no withdrawals at all. Treat this as a separate account and do not make frequent withdrawals to maintain steady growth.

Keep a tab on your progress

Besides putting in money, regularly check your savings account to calculate the balance and interest you have earned. There are digital resources to help you monitor your savings account online.

Explore other options

Many high-yield savings accounts offer higher interest rates but with curtailed withdrawals. You may opt for a CD (certificate of deposit), which has higher interest rates, in a bargain with limited access to your money for a predetermined period. This can be a long-term savings plan for you. Saving for a longer period without accessing it will help you build a significant amount in your savings account.

Hence, follow these tips to convert your savings account into an effective tool to build a secure future for you and your family. It will help you gain a safety net, and achieve your short-term and long-term goals apart from having a constant financial buffer.