Trying To Build Your Savings? Make Sure Your Account Does These 6 Things
Written by
Vance Cariaga
Edited by
Lindsey Kloosterman
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The first step in building a savings plan is making the decision to do so in the first place. Once you’ve crossed that threshold, the next step is deciding where to put the money. This means finding an account that offers competitive interest rates, low costs, limited restrictions and strong deposit protections.
Many consumers find an account that checks some of those boxes without checking all of them. Rather than settle for less, you should find an account that meets all of the criteria. If you’re trying to build your savings, you’ll want to make sure your account does the following.
It Should Offer a Competitive Return on Your Money
The one thing an account should always do is give you the best possible return on your deposits. The number to keep an eye on is the annual percentage yield, or APY. The APY is a formula used to calculate the amount of interest earned on an investment or on your account over one year.
The average U.S. savings account APY is 0.41% as of Apr. 21, 2025, according to the Federal Deposit Insurance Corp. (FDIC). But you should aim a lot higher than that. A high yield account can offer more than the national average, meaning your savings may grow faster.
It Should Allow for a Low Opening Deposit
Some financial institutions may require a large opening deposit to earn high interest rates, or to even open a savings account. Before opening an account, make sure it has a low opening deposit requirement.Â
It Should Charge Minimal Fees
Another thing you should expect out of a savings account is that it doesn’t reduce your earnings by hitting you up with all kinds of fees every month. The point of a high-yield account is to grow your wealth, so it doesn’t make sense to pay monthly maintenance fees that reduce your wealth.
Many banks and credit unions waive these fees if you meet certain requirements, such as maintaining a minimum balance. But even that places restrictions on the account. Look for accounts that require no monthly maintenance fees, no matter your balance.
It Should Have No Minimum-Balance Requirement
Speaking of minimum balance requirements, if you’re looking to grow your savings, you’ll want to look for an account that doesn’t require a minimum balance.
It Should Offer Unlimited Withdrawals
Some banks restrict the number of withdrawals you can make each month. These restrictions are designed to discourage customers from tapping into their savings accounts too often and to ensure the banks have enough cash reserves to operate.
Withdrawal limits were originally outlined in a federal rule called Regulation D, which limited certain customers to six withdrawals or transfers per statement cycle. That rule was relaxed during the COVID-19 pandemic, but some financial institutions still have limits in place.
To maximize your savings, you’ll want to look for accounts with no such limits on your withdrawals.
It Should Provide Federal Deposit Protection
Banks that are insured by the FDIC and credit unions that are insured by the National Credit Union Administration offer standard protection of $250,000 per depositor, per insured bank, for each account ownership category. You’ll want to ensure any account you keep your savings in comes with these protections — it means the money you have deposited is protected up to $250,000 should the bank fail or otherwise run into a financial crisis.
The bottom line of all of this is — if you’re looking to work toward building your savings, start by choosing an account that will work for you and your goals.
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Sources
- Federal Deposit Insurance Corp., National Rates and Rate Caps
