A savings account that you establish at your bank allows you to deposit money and let the interest increase on the money you save. Having a savings account may be important to save money for emergencies or long-term goals.

Types

Your bank offers several types of savings accounts. A regular savings account usually has a low interest on your savings. A money market savings account pays about a 3 percent interest rate on your savings and there aren't many restrictions on withdrawals. A Roth IRA is a retirement savings account, and your earnings are tax-free. However, your contribution limit is $5,000.

When To Open

At most banks you have to be at least 18 to open an account, although your parents can open one for you in their name. Many banks say the best time to open a savings account is as soon as you get your first job.

Minimum Deposit

The minimum deposit amount varies by bank. In general, $50 is enough to open an account.

Safety

Be sure to keep your savings account information in a safe place and always review your account statements for errors. If you find that your identity has been stolen, contact your bank immediately and, if possible, close the account with the help of the bank.

Average Savings Account Rates

The specific savings account rates vary by bank but according to Bankrate.com, the average rate as of November 2009 was about 0.79 percent.

Source:

Bank of America: Find The Best Savings Account

Msn Money: Get Your Savings Out of The Bank

Capital One Bank