Start a Savings Plan but Beware the Small Print
People realize the importance of saving for a rainy day even more during these difficult times. To help you save, many banks are now offering plans that allow you to automatically save money each month. Sounds like a great idea, right. After all, many people don’t save because they just don’t think about it. I think anything that gets people saving at least a little money each month is great. However, before picking a savings program be sure that you read the small print and know exactly what you are getting yourself into.
In some of these programs you will end up spending more money in monthly and annual fees, withdrawal restrictions, fees for using a teller, etc, than you will make each month in interest. This means that while you are putting money into a savings account each month, the money isn’t making any interest. In fact, it is getting smaller each month as a result of the fees.
Thus, while it is great to start a savings program, consider starting you own savings account and setting up a free automatic transfer from your checking to savings or you can start an automatic program with your bank but make sure that you know about all the potential fees and restrictions first and you will be on your way to fixing your finances.
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