It has long been thought that most people should try to keep their spending to around 90% of their income, less if possible, with the remainder being put aside for a rainy day. With the economy in something of a shambles, and economists predicting that we are about to hit another recession, the need to concentrate on money savings has become more important than ever.

There are numerous ways to make that extra money work for you, so that your rainy day fund becomes much more than you initially put in.

The easiest way to get your money saving underway is to open a savings account at the bank or credit union you are already a member of. That account can be opened with a very small amount of money and you can then transfer a set amount on a weekly or monthly schedule.

It’s the quickest way to get your money savings account started, but the downside is that the interest rates offered on these types of accounts is typically very low, which means that your money isn’t really working for you in any real way, and you end up with more of a nest egg than a decent savings investment.

Online Savings Banks

The internet has given rise to a number of online banks, all of which offer interest rates that are significantly higher than the traditional land-based banks. With most people now doing the majority of their banking online anyway, the idea of an online bank seems to make perfect sense.

If going that route, you should be aware that you may be required to open the account with a little more than you would in a regular savings account, and you should also make sure that the establishment that you choose is FDIC insured, so that your money is protected.

Both versions of banks will more than likely offer a Certificate of Deposit (CD) option, which is designed more for those who want a money savings account that they cannot touch until a later date.

This is a great option for people who are saving for something like a wedding or other large event, with the minimum deposit time usually starting at 6 month to a year. The interest rates with a CD are very good, with the only real downside being that if you have to withdraw early for any reason, you will accrue a very large penalty.

More Money

If you have a larger amount of money that you are looking to open an account with, then a money market account may be your best option. This offers the highest interest rate of all the money savings options, but is one that may require you to keep a minimum balance in the account at all times.

You can access this account at any time, and in many ways it works like a checking account, but again, it is usually limited to a set number of check transactions per month. Whatever option you choose, pick the one that works best for you and your cash, as there is no such thing as a poor money savings account.

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