Opening a savings account is a great way to step toward financial freedom. With a savings account, you can earn interest on your deposits, keep your funds safe, and easily access your money in case of an emergency. Learn about savings accounts' different features and benefits, and start building your financial future today.

1. Low minimum opening deposit

Most traditional or regular savings accounts require a low deposit to open. Credit unions, however, can open a savings account with as little as $5. With a small deposit, savings accounts can be a great way to teach children the importance of saving money.

2. Low or no fees

A low or no-fee savings account can help you progress towards your savings goals. Most credit unions offer a range of waived fees on these types of savings accounts. Here are examples of some fees that might be waived:

• Maintenance fees

• Minimum balance requirements

• Limits on deposits, withdrawals, or transfers

• Overdraft fees

• ATM usage fees (within the network)

• Excessive use of ATM card

• Replacement of lost ATM cards

Maintenance fees encompass various charges levied by financial institutions for maintaining your account. For instance, some banks impose a maintenance fee if you opt for something other than online access or paperless statements. Banks and credit unions are obligated to disclose fees upfront and transparently. It's crucial to scrutinize the terms, comprehend potential costs, and learn how to circumvent them.

3. High-interest rates 

Financial institutions encourage savings by offering interest on deposits. This interest accrues through compounding, typically daily or monthly. While rates vary, standard interest-bearing savings accounts usually offer modest returns. However, credit unions often provide more competitive rates than traditional banks. Explore local credit unions to discover their current interest offerings.

For those seeking more significant returns, high-interest-bearing savings accounts are available. These accounts yield significantly higher interest rates than standard options. However, they often come with specific requirements, such as maintaining a higher balance, restrictions on withdrawals and deposits, and sometimes necessitating using a linked debit card.

4. Overdraft protection

Accidents happen, and sometimes we may overdraw from our checking account. To avoid this scenario, you can set up savings overdraft protection. This feature automatically pulls the required funds from your linked savings account to cover the overdraft in your checking account. However, it's important to note that a transfer fee may apply.

5. Direct deposit

Setting up direct deposit to your savings account is a simple and efficient way to increase your savings. To get started, you need to initiate direct deposit with your employer and decide on the amount you wish to deposit. You can deposit a percentage of your paycheck (e.g., 60% to checking and 40% to savings) or a specific dollar amount. To complete the process, you must have your savings account's routing and account number on hand. You can find these numbers on your deposit slip, in your online account information, or by contacting a financial representative.