By: Bankmode Staff

Here are some tips that can help you on your way toward developing a successful savings strategy:

1. Pick the account with the highest APY. Since the annual percentage yield is calculated by compounding the interest, you should look at the APY rather than merely the rate when considering a savings program. Securing a high APY should increase your chances of successfully yielding high returns.
2. Create a budget. Monitor your spending to determine where budget cuts make sense. Scrutinize each expenditure with the intent of placing any discretionary income into a high-yield savings product.
3. Define clear savings goals. Know what you’re saving for and how much you need to set aside each month to achieve your short- and long-term goals. Minimize your risk and maximize your return by diversifying your portfolio.
4. Organize your expenses. Withdraw only the exact amount you need to handle out-of-pocket expenses for that week. Deposit any extra funds left over directly into a high-yield savings product. The sooner you start the more interest you’ll earn. Your deposits will make your savings grow much more than interest alone.
5. Get out of debt. Monitor your monthly credit card expenses and consolidate all outstanding balances into one tax-deductible home equity line of credit or zero- to low-cost percentage credit card.While you pay-down your debt, avoid charging any new purchases. Learn to pay with a debit or check card instead of charging something on credit.
6. Create an emergency fund. Set aside at least three to six months of your gross salary to cover unforeseen expenses in case of an emergency. Invest in a liquid high-yield savings product which can be readily accessed should you need the funds.
7. Use the Internet to find the best rates.  The Internet can help you compare rates from different financial institutions. Make sure you’re getting the best deal with the click of a mouse. Also, check with your bank to see if they have any online offers available.
8. Shop for no-fee deposit products. Use the Internet or call around to compare fees, APYs, and minimum requirements before you open an account. There are many banks competing for your business which offer “free” savings or checking accounts.
9. Set-up an automatic deposit account.  Instead of depositing your paycheck directly into a checking account where it can be easily spent, consider having it automatically deposited into a high-yield savings product. Another option is to arrange to have your paycheck deposited into your checking account to cover your day-to-day costs, while a predetermined amount of money is automatically transferred to your savings product of choice to ensure your savings grows consistently.
10. Ladder your CD investments. Stagger your investments by laddering your CDs with different maturity dates. This way you are not limited to the same term and yield should rates rise in your favor. Shop around for the best return.

Developing good savings habits takes discipline and time. Rates go up and down, new savings products are introduced, and your own financial situation can change along with market conditions. Following the tips mentioned above can help you become a smart saver.