I have trouble saving money. I need some sort of place to keep my savings aside. If I don’t, it WILL be spent on 12 coffee breaks, two pairs of shoes and a cute leather wallet.
In my years of tending bar and waitressing, I had a very professional system. Ten percent of my tips were put in a giant pile of loose cash on my dresser. After a month or two, dollar bills were everywhere and bits of change from my “savings account” kept making their way into my sock drawer.
Needless to say, I needed a solution. The lack of security was a problem, and having dozens of small bills littering my apartment was becoming a serious issue. From the looks of my room, there was more than just waitressing going on.
Opening a savings account at a bank didn’t seem like an option though, because of the monthly fees. Paying a bank to separate a checking account from a savings account? Ridiculous! In order to avoid a monthly fee, most banks expect clients to have a minimum balance of $100, $250 or $500. I’m a student. I rarely have $100 in savings, let alone $500.
Those minimum balances sound imposing, but with a little research monthly charges can be avoided. Most banks have a fee-free solution to savings, either by setting up a monthly transfer to your savings account or by opening a checking account.
A few of the larger national and international banks out there have very reasonable savings options. Chase Bank’s standard savings account has a $25 opening minimum. With a minimum of $300, there is no monthly fee. If that seems too intimidating, clients can avoid the fee by setting up an automatic monthly deposit to their savings – a very nice incentive to put money aside.
Citibank’s standard savings account can seem difficult from their website. The opening minimum deposit is $100, and the monthly fee can’t be waived without a $500 minimum balance. Speaking with a representative can yield results though. Opening an account and setting up a checking or savings package can help you avoid some of the fees.
US Bank currently has two accounts that are fairly reasonable. If money markets seem appealing, they have an account with no monthly fee and a $25 minimum as long as you have another account with them. However, their standard account has a $4 monthly fee with a minimum balance of $300.
Some of the smaller banks have attainable savings accounts, but there is normally a quarterly or monthly fee attached.
M&I Bank has a $9 quarterly fee if you don’t have the $500 monthly minimum. They do have a $50 opening minimum.
AnchorBank has vague monthly fees attached to their savings accounts unless you have the $500 minimum balance. A $100 opening balance is required.
Associated Bank, aside from its notoriously tricky way of handling overdrafts, has a $100 dollar minimum and a $5 monthly fee. If you have a checking account as well though, you can avoid the monthly fee and open the account with only $25.
The truly appealing and successful banks in the area seem to be the credit unions.
UW Credit Union has a savings account that can be opened for $5 and maintained without a monthly fee. Dane County Credit Union has the same opening balance with no fee as well.
It’s also possible to sort your money using online banking, creating special accounts for vacations, a new TV, or that car repair you haven’t been able to afford.
All in all, saving is attainable. Just don’t be afraid to call your local bank and explore all the possibilities. Research your options, and find a savings account that’s perfect for you. I’m just excited that I don’t have to keep my savings in an unruly heap in my room anymore