At the very foundation of all things money and job related, lies the bank. Here we will discuss the various options and other information surrounding the most common account you will open: the savings account. We will also go into how the account works out for both you and the bank, even though they pay you interest.
Pretty much what it sounds like - this account holds money that you want to save. This could be short or medium term, but it’s best to put away a large portion of your income into a longe-term savings account (and leave it there). This is money that should be used for emergencies, or possibly long term large purchases. The account will provide a safe place to store your money so it can grow. Money in the account will usually accumulate interest, which is usually very small, but can add up over several years. You are less likely to spend money put away, and it is insured in case anything happens. Your money will stay very safe.
Why would the bank give you interest for doing nothing? When you put your money into their accounts, they have more money to loan out to other people. The bank makes much more money on loans, then it gives to you in interest. In this way, the bank turns a profit, and you get a little extra cash on the side. However, keep in mind that the amount of interest is usually less than one percent. If you have a larger amount of money in the account though, you will most likely receive a slightly higher interest rate. Most banks have several tiers of rates, so you will need to contact your local bank for specific rates.
Once the account is set up, you should receive statements in the mail. These will tell you recent deposits (for a certain billing period) and the amount of money in your account. There are very rarely any fees for savings accounts, so just keep on making deposits and watch the money grow.
If you are under 18, you can still open up a savings account, and you should open one (to start saving) as soon as possible. Just make sure to have a parent with you when you sign up, because they will most likely need to be a co-signer on the account.