Saving is as vital as earning money. Now, everyone should have a savings bank account, which should hold the finances that he/she is saving up every month. This saving can be for buying a house, planning a wedding or surviving retirement. Financial experts suggest that the day you start to earn is also the day you start to learn to save. So, here are a few tips for optimizing a savings account that you must consider.

• Don’t go overboard
  The first one in our list of tips for optimizing a savings account is that you should not go overboard. Saving too much is as detrimental as not saving anything. Think of a situation where you have to leave your checking account short of the amount you need to pay the bills. Alternatively, if you have to dig into your savings account even for your day to day expense, then you are defeating the very purpose of holding a savings account. The best way, therefore, is to start modestly, and then increase the amount.
• Separate your savings account
  Usually, a person has his checking and savings account in the same bank because it is easy to transfer funds from one account to another, whenever needed. However, this also creates an urge to pull the money out of the savings account too frequently. This will prevent your bank account for being a long-term savings account, as it should ideally be. One of the tips for optimizing a savings account is holding this account at a different financial institution or an online-only bank. You should also check the interest rates, etc. before making such a choice.
• Choose the right type of savings account
  This is also quite important. If you are looking at long-term  savings options, you can go for IRAs, the full form of which is individual retirement accounts. These are usually FDIC approved. A CD or certificate of deposit will also earn you higher interests than a savings account, but the money will be locked for a fixed period. The longer the term, the higher will be the interest. However, this choice of the savings account will ideally depend on your finances and what you are planning to do with them, both short-term and in the near future.
• Go for direct deposit
  Another of the important tips for optimizing a savings account is to go for the direct deposit option. If you are in a job, you can ask your employer to deposit a portion of your salary into your savings account. That way, you don’t even have to remember setting aside money monthly or at regular intervals. However, make sure this amount that goes directly into the savings account is only as much as you can afford to save.

With these tried and tested tips for optimizing a savings account, you should be able to manage your finances better and deal with a crisis, in case it ever arises.