What is the best way to save money at the bank?

I am only 24 but i would like start saving right now. I don't want the bank to take my hard earned cash through fees and interests. I heard about money markets and roth ira but i don't know anything about it.


What is the best way to save money at the bank?


Thank you.|||Here is what I would do:





1. Check with your bank or your account documentation to see how to make your accounts free, and do that. Many checking accounts require a direct deposit or a certain number of debit card transactions to avoid a monthly fee. Find out the requirements your bank has so you don't get a monthly fee. If you have a savings account now, you may need to keep a minimum balance to avoid the fee. If so, either get to that minimum balance or close the account.





2. If you're wanting to avoid overdraft fees, check with your bank to see if you are currently "opted in" or "opted out" of them authorizing your debit card when you don't have the money in your account. If you did nothing, you should automatically be opted out. However, many banks are being tricky to get you to opt in, by either persuading you into it at the branch, or getting you to agree to it online... Some even at ATM's! They call it overdraft "coverage" or "protection". What it actually does is approve your card and charge you a $35+ fee! Check to make sure you haven't opted in before, you want to be out so they deny your card for one-time transactions. Be careful though, because checks and any automatic transaction such as an ACH (when you give a company your routing and account number to pay something), or even an automatic payment like a gym membership will still get approved and charge fees.





3. If you want to put back some money to save, start an automatic transfer to your savings account. Do something small and painless, even if it's $25 per month. If you're new to saving, I would highly suggest starting with the most basic savings account they have.





4. Money market accounts are like savings accounts, the only benefit is that they sometimes pay better interest, and let you write up to 6 checks a month off of them. They're usually used by high balance customers looking to gain the most interest on large amounts of money in the bank. They typically have high minimum balances like $1,000 or more, and charge monthly fees if you're below that.





5. IRA's (Individual Retirement Accounts) are for saving for retirement. They're very complicated, but the main idea is that once you deposit into it, you can't take out of it until you're 59 and a half years old. If you do, you face heavy penalties. It's great for tax reasons when you're saving for retirement, because you can put money into a traditional IRA and deduct it from your taxable income. However, see how disciplined you can be when you put money into a regular savings account before considering an IRA. Even then, talk to a tax professional beforehand or do a lot of research before opening one. There are multiple types (Traditional, Roth, etc.) and different options (IRA Savings, CD's, etc.) and you can face huge penalties if you don't know what you're getting into.|||Interest is actually money that you earn on your savings. Interest earned is a *good* thing.





If you can possibly join a local credit union, you'll almost definitely find that's the best place to save your money. They generally don't charge as many fees as most banks, and treat their members much better than most banks treat their customers.