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How Do Savings Accounts Work?

A man and a woman pore over papers in front of a laptop and calculator

Whether you’ve just started a first job, graduated college, had a child, or started planning for your future, saving might be on your mind.

Putting aside money for college, a first car, a new home, retirement, or any other future expenses can be a wise financial decision. But what is the best way to go about this?

One option offered by Landmark National Bank, and many banks around the world, is a savings account.

What Is a Savings Account?

A personal savings account is a type of bank account meant to hold larger amounts of money that will ideally sit relatively untouched. Many people use a savings account to help pay for emergencies and unplanned expenses or to save up for things like a house, a car, or higher education.

A savings account also accrues interest at a higher rate than a standard checking account, so it is a great tool to help build wealth. With a bit of planning, a personal savings account can help you reach any of your financial goals.

How Does a Savings Account Work?

Essentially, a savings account lets you deposit money you have for safekeeping and in a way that will earn you more money in the form of interest.

Savings accounts are not designed to be transaction accounts, and excess withdrawals may incur fees. Instead, savings accounts hold your money until you are ready to withdraw, usually to make one of those big purchases you’ve been saving up for.

How Do I Open a Savings Account?

Opening a savings account can be rather simple, especially if working with a bank like Landmark.

Typically, you’ll need to have an opening balance. A Smart Savings account with Landmark Bank only requires you to initially deposit $50 into the account when you open it.

Once you have money in an account, your savings account balance will start earning interest from the bank. This means the bank will add a percentage of money to your savings account based on how much you have saved.

Though you do have to pay taxes on the interest earned on a savings account, the interest is earned without you having to do a single thing. Simply deposit and wait.

Why Open a Savings Account?

Having a savings account is a safe way to grow your money for a future investment.

Different banks and different types of savings accounts will yield different interest rates and have a variety of benefits.

At Landmark National Bank, options include Youth Savings for children under the age of 18, Smart Savings, an Optimum Money Market that requires a larger opening balance but earns tiered interest, and a Certificate of Deposit or Individual Retirement Account.

Open a Savings Account With Landmark National Bank

A savings account is a great tool to help you build financial stability, and make your money work for you. Our wide selection of savings accounts allows you to find a product that meets your needs, no matter what stage of life you’re in.

Contact us today to find out how you can open a savings account that meets all your needs with Landmark National Bank.

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