how much to keep in your savings account
the amount you keep in your savings account will depend on your goals for the funds or your use of the account if you ve set up the savings account to sweep excess funds from your checking account your balance is likely to vary regularly in contrast if you are building up to a savings goal your balance will likely start low and increase steadily over time if your savings account is your emergency fund aim for enough to cover at least three to six months living expenses that gives you some financial cushion if you face an unexpected expense like a medical or car repair bill or if you lose your job depending on your financial situation you may want to keep some of that emergency fund in a simple savings account and invest the rest to seek higher returns keep in mind that up to 250 000 of your deposits are protected by fdic insurance or ncua insurance that ensures your funds are safe should the institution fail for most consumers this more than covers what they have on deposit but if you are holding more than 250 000 in deposit accounts consider splitting your balance across more than one account holder or institution 43kids and student savings accountsyou must be 18 or over to open a savings account on your own in the u s but many savings accounts are designed for minors you can get a savings account for a child by co signing for the account bank accounts designed for students usually have maximum age restrictions for example you may not be able to open a student bank account if you are over 25 these accounts designed to teach younger adults how to use a bank account usually have lower fees and requirements but they also tend to offer lower interest rates frequently asked questions faqs 