How savings accounts work
Banks will pay you to let them hold your money for you. They “borrow” the money from you, so they pay you “interest.” Some banks will pay more interest than others, so it is good to shop around to find the best deal.
You can put money into your savings account by:
- filling out a deposit slip at the bank
- using an ATM which takes deposits
- “direct deposit” of your payroll check if you choose to have your company do that
You can take money out by:
- filling out a withdrawal slip at the bank
- making a withdrawal at an ATM
You keep track of your money in a savings book:
Write down all of your deposits.
Write down all of your withdrawals.
Compare your monthly statement with your savings book each month.
Note: You must have proper identification to open an interest-bearing account. You will need your social security number or an Individual Tax Identification Number (ITIN).If you do not have one, some banks will still let you open an account, but you cannot be paid interest.
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