A savings account is the first types of bank accounts we open. Yet, it is also one of the most neglected ones. We often forget that a savings account can do so much for us apart from just storing money. In fact, a savings account can help you grow your money!

If this sounds interesting, let us learn about the best tips for optimizing a savings account:

Opt for high yield savings account
A savings account should be chosen wisely. Always opt for a savings account that gives you a high yield. By this, we mean that the APY (annual percentage yield) should be good. A high annual percentage yield results in you getting more interest on your account. This means that your money is not just sitting idle in the account, but actually growing. This is one of the greatest tips for optimizing a savings account.

Set up automatic transfers
You should look to set up automatic transfers from your checking account to your savings account. This will mean that as soon as your salary hits your checking account, a portion of it will automatically get transferred to your savings. Since there are limits on the number of withdrawals you can make on your savings account, you are less likely to spend the money as compared to a checking account. Not many people are aware of this feature, but this is the one that plays a big part in saving your money. Now please note that not all banks follow the same rules. Each one has its own terms and conditions and this is why you should enquire with your bank about any fee that they charge on the number of transactions that you make. 

Go for an FDIC insured account
When choosing a savings account, it is imperative that you opt for a bank that is FDIC insured, FDIC stands for Federal Deposit Insurance Corporation. The FDIC insures each depositor for a maximum amount of $250,000 per account. This essentially means that if the bank where your savings account collapses or suffers any kind of losses, you will get your money back in full value no matter what the case. This proves to be a very important step, as for many people such amounts are their entire life savings and cannot be risked with. It is no surprise that most people go for FDIC accounts where they are covered. 

Build a relationship with your bank manager
When it comes to your savings account, there is no other person that will be able to help you other than your bank manager. They know all the terms and conditions of your bank and is the only person who is able enough to give you sound advice as to what you can do with your savings account. That’s why you should communicate with your bank manager to stay updated on improving your savings account.