A savings account is a bank account that pays interest on the money you deposit. Most banks pay compound interest, which means they add your earnings to your account and pay interest on the balance. A savings account can give you peace of mind because the money you save will be safe, and it can help you cover unexpected expenses.
Personal Deposit
The traditional way to add funds to a savings account is by making a personal cash or check deposit at a bank branch. Many banks may require you to provide identification such as an ATM card and/or driver’s license before processing your deposit.
ATM Deposit
An alternative to making deposits in person is to use an ATM. Your bank should provide you with a list of network ATMs you can use without incurring fees. Make sure the ATM belongs to your bank’s network and accepts deposits, as some ATMs only allow withdrawals.
Mobile Check Deposit
Many banks now allow you to deposit checks into your checking or savings account using an app on your smartphone. First, read your bank’s rules regarding mobile check deposits. Many of them set limits on the number of checks you can deposit per day or per month and also impose cash limits on those checks. Some banks may require you to endorse the check in a certain way, such as writing “for mobile deposit only” below your signature.
Online Transfers Between Accounts
Another way to add money to a savings account is to link it to your checking account or another financial account and make a transfer. You can link your savings account to an account at the same bank or a different financial institution. The process for linking accounts varies, so follow the instructions from your financial institution. Once your accounts are linked, you can transfer money to your savings account from the other account for free.
Direct Deposit
An easy way to add money to your savings account is to have your paycheck, social security benefits, retirement benefits, or any other income directly deposited into your savings account.
Wire Transfers
Wire transfers are electronic transfers of money from one bank to another. Unlike automated clearing house transfers, which are processed in batches, wire transfers are processed as individual transactions.
Frequently Asked Questions
What type of savings accounts earn the most money?
Certificates of deposit (CDs) typically pay higher interest rates than standard savings accounts. The trade-off is that you can’t access any of the money in your account until the CD matures. If you withdraw funds before the maturity date, you will face an early withdrawal penalty.
How much money should I have in my savings account?
Financial experts often recommend having enough money in a savings account to cover your living expenses for three to six months. This money can be earmarked as an emergency fund to cover unexpected expenses like car repairs or to cover necessary expenses if you lose your job.
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Sources:
Randolph-Brooks Federal Credit Union. “How To Make Safe and Secure Deposits at an ATM.”
United Credit Union. “Mobile Deposit.”
Bureau of the Fiscal Service. “Automated Clearing House.”
FINRA. “Certificates of Deposit (CDs).”
FINRA. “Savings Accounts.”
Source: https://www.thebalancemoney.com/how-to-add-money-to-a-savings-account-5409600
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