Everyone must have a regular savings account.
Most of us had the privilege when we were younger that our parents would one day start us on the path to better fiscal habits. Normally this would start with your first bank account, a savings account. Now I am sure when I saw that most of us actually have one but hardly any of us actually utilize or understand the real need to take advantage of some of the perks this type of account provides.
A savings account is different from other types in the fact that it usually requires a higher balance be kept, but in return you will earn a much higher than average interest on your money. The idea is that you can put in or take out as needed without penalty, but in the meantime still earn a fair amount back on your money. This is a wise choice when investing is to risky or building a rainy day fund.
Developing a discipline to add cash to this account every pay period will become one of the greatest skills and trust me you will thank yourself on that fast approaching rainy day.
Some caveat for the savings addicted. Some accounts will charge you if you drop below a predetermined balance. Some with charge you if you move more than a certain amount in or out in one month. I recommend taking a good long look at your banks fine print in regard to your savings account. More times often than not the higher the minimal balance the higher the earned interest rate per month, so if you can afford to let some money sleep safely you would be the wiser to do that as soon as possible.
Savings accounts are the back bone to your fiscal growth and independence in the long term do not neglect to fatten up your piggy bank!
