There are a few ways you can make deposits to and/or withdrawals from your savings account. Keep in mind that, unlike with checking accounts, it’s in your best interest to make as few withdrawals as possible so that you can earn more interest and avoid fees your bank might charge.
Usually when you open a savings account, no matter the kind, the bank will give you a book of deposit/withdrawal slips. These forms can be used to move money in and out of your account and will most often be used when you’re doing in-person banking at your local branch. Depending on your bank, the slips may look different, but here’s a sample of a typical deposit slip.
If you’re making a withdrawal, the form you use may look a lot like a check. See an example of a withdrawal slip.
An ATM card allows you to deposit and remove money from your account through an ATM machine. Unlike the debit card you might receive with a checking account, which can be used like a credit card, ATM cards usually don’t give you the ability to make store purchases directly. Most banks will offer you a free ATM card with a basic savings account. Just ask yourself whether you’ll be tempted to take money out of the account needlessly if it’s too convenient to get it.
If you open a money market account, you might also receive a debit card. Debit cards look like credit cards (they will have a Visa® or MasterCard® logo on them), and they are accepted anywhere credit cards are accepted. You can use debit cards to withdraw money or make purchases without accumulating interest because the money comes directly from your account.
Because of the convenience of using your ATM or debit card, it’s very important that you keep track of how much money you deposit to and withdraw from your account. For more information about maintaining your account, click here.
Automatic Deposit and Transferring Funds
This is a great way to make sure that you’re regularly depositing money into your savings account. There are a couple of ways you might want to have money automatically deposited into your account. One way is to have your paycheck directly deposited into your savings account each month. If you’d rather not deposit your entire paycheck, many banks will allow you to have part of your paycheck deposited into your checking account and part of it deposited into your savings account. Many people find that using direct deposit is the easiest way to handle their paychecks. Direct deposit is usually set up through your employer and will require you to fill out a form and supply them with a voided check or deposit slip so that direct deposit can be set up. Once it’s active, your paycheck, or a portion of it, will go directly into your specified account(s) each pay period.
You can also choose to have funds from one account, like your checking account, transferred into your savings account. Of course, the accounts all need to be at the same bank. This is also helpful if you choose to use your savings account as a form of overdraft protection for your checking account, which means money from your savings account will automatically transfer to your checking account if you are overdrawn.
Checks are basically documents that tell a bank to use money from your account to pay a designated business or person. If you open a money market account, you will be able to write a limited number of checks each month. Many banks will provide you with a free book of checks when you open your account, and some will even give you free checks for the life of your account.
When you write a check, you’ll want to make sure to write down the check number, the amount and who you wrote the check to so you can keep track of how much you’ve spent. For more information about maintaining your account, click here.