How to Open a Savings Account

When unexpected financial issues come up, how do you deal with it? This is where savings comes into play for many people, but not everyone practices saving money. One of the best, most convenient, and safest places to store (and grow!) your wealth is in a savings account. Don't have one yet? Whether you're just starting out with managing your finances or you're looking to find a better way to plan for emergencies, learning how to open a savings account can really benefit you.

How to Open a Savings Account

 Opening a savings account is an easy process! You just need a couple of things:

   •     Your social security number.

   •     Photo identification.

   •     In some cases, a minimum deposit. Some financial institutions require savings accounts to have a minimum balance in them at all times. Check in advance to see if your credit union or bank has this policy.

And that's it! When you're ready to open your savings account, visit your financial institution with these items, and an employee will walk you through the rest of the process. There are a few other things you might want to know about savings accounts, though . . .

Benefits of having a savings account:

   •     Security. Your money is much safer stowed away in a savings account than under your mattress or in your sock drawer. Plus, there are national organizations insuring your money against theft or damage—the National Credit Union Administration insures credit unions, and the Federal Deposit Insurance Corporation insures banks.

   •     Interest. This is one of the most attractive reasons to open a savings account: earning more money just for having one! 

   •     Membership at credit unions. When you open a savings account with a credit union (as opposed to a bank), you become a member. For many accounts, this means you earn free, additional dividends regularly. These institutions are usually able to offer higher interest rates, as well. This perk is specific to credit unions!

Differences between checking accounts and savings accounts:

You've likely heard of both savings and checking accounts, but might not know the difference between the two. Knowing this is essential when you learn how to open a savings account. 

You can't access your money as often with a savings account. Savings accounts are meant to save money, so there are often limits on how many withdrawals you can make in a certain period of time. Similarly, you won't have a debit card or checkbook tied to a savings account like you would with a checking account. This is so you can let your money grow.

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Looking to get started with a savings account? If you live in southwest Missouri, look into BluCurrent Credit Union! We offer our members a number of benefits: three locations (two in Springfield, one in Nixa), online and mobile banking, and plenty of member rewards. We'd be happy to get you more acquainted with BluCurrent, so if you have any other questions about how to open a savings account, our organization, or simply how credit unions work, stop by one of our branches or explore our website. We can't wait to meet you!