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Tips for Finding the Best Savings Account for 18-Year-Olds

Not all accounts are the same, and not all savers are the same. An account that makes sense for parents may be totally wrong for the average 18-year-old. If you are a young adult looking to control your finances, you’ll want an account with no fees and lots of flexibility. Keep reading to learn how to find the best savings accounts for an 18-year-old.

How to Find the Best Savings Account When You Are 18

find savings account when you are 18

Whether or not you are on a tight budget, it is wise for young people to start saving — even if it’s just a little bit at first. There are many deposit products to help you get started.

At 18, the best savings account for you is low-cost and convenient. Two features of a savings account that are important to most 18-year-olds are:

1. No minimum balance.  

Most 18-year-olds don’t have a large sum of money to deposit into a savings account. A savings account with no minimum balance allows you to open an account with as little as $1.

If you need to withdraw your savings down the road, you will not be penalized for dipping below a required minimum balance – giving you total access to all of your savings if you need it.  

2. No monthly fees.

Not all savings accounts are free. Some accounts waive the service fee only if you maintain a minimum balance. Look for an account that does not charge a monthly service fee regardless of your balance. 

Do Your Research

research your banking options

When researching your options for a bank account, have you looked into online banks? Online banks are a great choice for young adults:

It’s Never Too Early to Save for Retirement

Experts agree that short-term savings accounts should be complemented by other long-term savings tools to help young savers prepare for retirement. One retirement tool that may be right for 18-year-olds is a Roth IRA (individual retirement account). Here’s why.

You can contribute to a Roth IRA no matter what your age, as long as your income is less than the IRS threshold. And your earnings develop tax free for life. You must still pay income tax on the money you contribute. 

Be sure to consult your tax adviser or financial planner before opening an IRA. 

Synchrony Bank Offers 18-Year-Olds the Savings Accounts They Need

At Synchrony Bank, we understand what young people want in a savings account. Our high yield savings accounts require no minimum balance and charge no monthly service fees. Online banking makes managing your savings quick and convenient. You can even start saving for retirement with an IRA from Synchrony Bank. 

To find the best savings account for you, call Synchrony Bank at 1-844-345-5789 or find us online.

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Source:

IRS: https://www.irs.gov/retirement-plans/roth-iras


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