Want to Save More in 2024? Take This Step Right Now to Boost Your Odds of Success

Saving more money is one of the most popular financial New Year's resolutions people make, and it's easy to see why. More money means more freedom to buy what you need and do what you want. But it's not always easy to pull off.

The traditional view of saving more means making sacrifices and forgoing things you want so you can stash more cash in the bank. But there's another, much easier way to beef up your savings next year. And if you take this key step right now, you can dive right into saving in 2024.

Lay the groundwork now

Technically, you don't need a savings account to save more. You could stash the money under your pillow if you wanted. But there are two reasons why having a savings account makes sense.

First, it'll keep your money safe. Bank robberies of the sort seen in old Western movies don't really happen these days, but home break-ins happen quite often. Your cash is much more likely to remain in your possession if you keep it in a bank account. Plus, any reputable bank is going to protect your cash with FDIC insurance up to $250,000 per person per account, so you won't lose anything if your bank goes under.

The second reason you should have a savings account is because you can earn interest on your cash over time. This is something you can leverage to grow your wealth more quickly and with fewer sacrifices on your part. You can't just choose any bank, though.

Brick-and-mortar banks typically offer low interest rates that earn you a few pennies a year if you're lucky. And even worse, a lot of them charge maintenance fees that could actually cost you money if you don't keep enough money in your account.

You need a high-yield savings account from an online bank if you really want to grow your money quickly. Rates fluctuate over time, but right now, the best savings account interest rates are hovering around 4.50%. That could put $450 in your account in one year if you have a $10,000 initial balance.

Banks that offer these types of accounts typically don't charge maintenance fees either. So all the money you earn stays in your pocket.

How to find the right high-yield savings account for you

Opening a high-yield savings account today can help you get a strong start on your New Year's resolution because you can begin saving from day one. But there are a lot of options out there, and it's easy to get overwhelmed. So here are a few tips to help you in your search.

You don't need the highest possible interest rate

It's tempting to hunt for the highest possible interest rate before settling on a savings account, but this probably isn't worth the effort. Savings account interest rates fluctuate over time, and the savings account with the highest rate today may not hold that title tomorrow. Instead, focus on finding a rate that's among the best.

Check its fees

You probably won't have to worry about too many fees with online banks, but it's helpful to look over the bank's fee schedule anyway. Think about how you intend to use your account and what charges that might lead to. For example, if you frequently send money out via wire transfer, make sure your bank doesn't charge costly wire transfer fees.

Think about the features you want

Those who want to withdraw cash from their savings account directly should look for a bank that includes a free ATM card. Make sure the bank has a large network of fee-free ATMs in the areas you frequent as well so you can access that cash without penalty.

If you have any questions about a bank's savings account or how to apply, don't hesitate to reach out. Start exploring your options now and aim to have your new account opened by the end of December so you can start making your initial savings deposits in early January.