Keeping your money under the mattress or in a shoebox is not only potentially dangerous (if you are robbed or if there's a flood you'd have no recourse to recoup your funds), it's financially unsound: the only interest your shoebox money may earn is mildew.
Benefits of a Savings Account
By putting your money aside in a savings account, you're less likely to spend that money. Also, thanks to the FDIC, if your money is deposited in a savings account through a member FDIC bank (like the ones found in the MoneyAisle network), your account is insured up to $250,000.
Another benefit is the interest you receive on your savings account. Interest rates can vary, but if you shop around for a good rate on your savings account you can save money and make money at the same time. Interest compounds itself, so while your savings account is earning money you're earning interest on the interest earned.
Paying Yourself First
One way to start saving is to "pay yourself first" - if you set aside a portion of your direct deposit pay to be deposited directly into your savings account before you pay your other bills or purchase luxuries, then you're less likely to miss that money. If you deposit that money in your savings account after the fact it can get a lot harder to resist the temptation to buy something cool.
Obviously, you want to make sure you have enough money to pay your bills, and set aside some cash for entertainment and fun, as well. Once you've budgeted that, setting aside a reasonable amount into your savings account is a great way to build your savings into an emergency fund, or to take that savings at some later date to fund a vacation, a new television, or a trip to a sporting event. With the high amount of interest you can get through some savings accounts, you can fund some of these items with the interest earned alone, without having to touch your primary savings.
Find a Great Savings Account
MoneyAisle auctions are a great way to find a High-Yield Savings account - banks bid in live auctions for your deposit amount and you're provided with the best savings account rate available in our system at the time of your deposit. Once your initial deposit is made you can work with the bank and your employer to set up your direct deposit and start paying yourself first. We think you deserve it.
Related Articles:
The Online Savings Account
Getting the Best Savings Account
Finding the Best Savings Account Rates
Savings Account Interest Rates
Getting a Great Savings Account APY
What Each Individual Should Look for in a Savings Account