Savings Account
After planning a financial budget, the next step is to choose a savings account. Be sure to do plenty of research and ask plenty of questions before making the decision. Different financial institutions have different types of savings accounts that offer different interest rates, different fees, and different benefits.
One very important factor in choosing a savings account is the interest rate. It is best to get a fixed interest rate rather than variable so that you can project your return with more accuracy. But this is not the sole deciding factor.
Often times banks will offer perks or benefits to customers that carry a checking and a savings account with the same bank. Basically the idea is that if you have the 2 accounts with them, then you are more than likely giving them more money to invest. So the more money you put in, the more money the bank can make with your investment.
You want to make sure that the the bank is a strong institution. Remember that you will be entrusting them with your future. The older the bank, the more you can trust their staying power. That is not to say they will never go under, but it definitely lowers the odds.
It will help you to project your savings based on your current budget system. Assuming you make the same income for the next 20 years, project your savings for the different accounts you are interested in to see in 5, 10, and 20 years how much you will accrue. The bankers you speak to should be able to help you with this. This way you can see a very accurate representation of the benefits of one savings account over the other.
Be sure to talk with multiple financial institutions before you choose which savings account is right for you. It may seem like a lot of work, but remember that this is your future.