Now more than ever single women are beginning to realize the necessity of a savings account. When young women start out on their own, they immediately open a checking account and apply for a credit card or two. They need both.
The checking account is designed for immediate cash flow. It prevents the single woman from having her entire paycheck in cash while providing her with all the benefits of it. Of course, with the increase in the use of debit cards and the ability to pay our bills online, checks have almost become a thing of the past. Yet, the account is still referred to as a checking account.
Every single woman immediately thinks of getting a credit card. Credit cards are wonderful tools for building good credit if used responsibly. For many, unfortunately, credit cards create more debt than anything else. Single women need to learn to use their credit cards to build their credit scores, not wreck them.
Seldom does one think of opening a passbook savings account. However, the simple savings account is one of the greatest assets a single woman can have. While most are no longer high interest savings accounts, these simple accounts can prove invaluable to the woman just getting started in the work place.
First of all, the woman can make a deposit into the account at any time. Unlike certificates of deposit that require a minimum amount to purchase, most simple passbook savings accounts can be opened with a hundred dollars or less. Deposits can be made any time the account owner wishes. This makes saving a portion of each paycheck a little easier. For those who have their paychecks set up on direct deposit, many banks will deposit part into the savings account and part into the checking account, according to the directions of the account owner.
Second, the passbook savings account is a good way to learn the positive habit of saving. At the same time, it is forgiving if for one reason or another the owner cannot make a deposit from time to time.
The third reason to have a savings account is that the money held in it can be withdrawn at any time. There is no penalty for early withdrawal. At the same time, to make a withdrawal is not as easy as writing a check or swiping the debit card. It gives the single woman time to think about making the withdrawal rather than taking money from the account on a whim.
The fourth reason to open a savings account rather than trying to keep savings in the cookie jar is that the account is FDIC insured. The money is safe.
Some of the appeal of the simple savings account is returning, especially to the young single woman taking her first solo steps in the business world.
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