How to Open a Savings Account

Do you have a savings goal? Taking small steps to build your savings now can help you prepare for the future. If you’re looking to start an emergency fund, save for a vacation or just get a handle on spending, opening a savings account can be a helpful tool. 

Savings Account Benefits

A savings account is more than just a place to put your money. It also provides other benefits. 

• Security. A savings account can be one of the safest places to keep your money. If your account is with a financial institution, your deposit of up to $250,000 per account is insured. In a bank savings account, money is insured by the Federal Deposit Insurance Corporation (FDIC). Money in credit union savings accounts is insured by the National Credit Union Administration (NCUA).
• Earnings. When you deposit money into a savings account, your money can grow, thanks to dividends and interest. Credit unions are member owned, so if you’re a credit union member, your earnings are paid in the form of dividends. In a bank, your earnings are based on an annual percentage yield (APY), which is the rate of return that your savings account will earn over one year. 
• Safety net. By putting money in a savings account, you’re creating a fund to draw from in case of emergency or to help fund short- or long-term financial goals.

What Account Features Are Important to You? 

Before you choose an account, it’s important to decide how important certain features are to you, like how easy it is to withdraw funds, whether you have 24/7 access or other options. Some of the most popular features include: 

• Digital access. Most financial institutions offer mobile* and online banking. Look for options such as mobile check deposit, an easy-to-use mobile app or free money transfers. 
• Liquidity. Liquidity just means how easy it is to access your money. If you want to be able to withdraw at any time, look for savings accounts that allow withdrawals and transfers via multiple channels, such as in person, at an ATM with your debit card and online. And check on whether your financial institution has withdrawal limits or charges fees.
• Competitive dividend or interest rate. The higher the rate, the more you’ll earn and the faster your funds will grow. Compare rates, features and limitations at several banks and credit unions. You can get started by checking Navy Federal’s savings rates. Navy Federal is federally insured by the NCUA. 
• Automatic saving. If you use direct deposit for your paycheck, a portion of it can automatically be deposited into your savings account. Your financial institution may also allow you to set up a regular automatic transfer from your checking account to your savings accounts.

Ready to Open a Savings Account? 

It should only take a few minutes to open a savings account. And, whether you’re opening it online or in person, the process is pretty simple.

1. Have documentation ready. Make sure you have a government-issued ID available. Some examples include a driver’s license, passport or military ID. You’ll also need to provide your Social Security Number, date of birth, home address and phone number. 
2. Select an account. Once you’ve done your research, it’s time to decide whether you’ll open an account at a credit union or a bank. If you decide on an account at a credit union, you’ll also need to know if you’re eligible for membership. Want to open an account at Navy Federal? If you’re not already a member, you can check your eligibility for membership right now and join today.
3. Submit your application.  At Navy Federal, you can open a savings account online or at any branch. If you have questions, our stateside member service representatives are available 24/7 at  1-888-842-6328.
4. Fund your account and start saving. The minimum initial deposit is typically $25 to $100 for each account, depending on the financial institution. Navy Federal’s  minimum deposit is just $5 when you become a member and open a savings account. 

Simplify Saving

If you’re looking for an easy way to keep up the momentum, consider setting up direct deposit or automatic transfers to your savings account. Then you can relax and watch your money grow! Not sure how much to set aside each month to reach your goal? You can use our savings goal calculator to see how long it might take.