2. Interest that accrues over time
The money you put in your savings account keeps right on growing when interest is paid to your account. That makes a savings account a smart place to put money you plan to use for short-term goals like a vacation, furniture or for your emergency fund.
3. Worry-free finances
You can rest assured that the money you keep in a savings account is safe because the Federal Deposit Insurance Corporation guarantees your deposits up to $250,000.
4. Low or no fees
Another advantage of a savings account is that fees are minimal and can sometimes be eliminated. You can often reduce or eliminate service fees by maintaining a minimum balance or setting up automatic transfers, and, depending on the type of account you choose and the size of your balance, there may be little or no fees for withdrawals. Be sure to compare savings accounts to understand their features before you set one up.
5. A stepping-stone to long-term goals
A savings account can be a great place to park your money and let it grow until you are ready to move it to a longer term deposit or investment. Remember, some types of investments may require a sizeable initial deposit or incur fees if you’re not investing a large sum.
6. Additional advantages of a savings account
Link your checking and savings accounts and you may enjoy even more benefits. For instance, with our Keep the Change®footnote1 savings program, for every purchase you make with your Bank of America debit card, we’ll:
- Round up your purchase to the nearest dollar amount
- Transfer the difference from your checking account to your savings account
- Track your savings in Online Banking