Savings accounts are the simplest way to save money. This is a safe place to put your money if you don’t need it in the short term. The bank is so appreciative of you letting them hold your money they will pay you for the privilege…which is called interest see Simple & Compound Interest & The Rule Of 72 Section.
How much interest? That depends on the bank you choose, how much you have in the bank, and how long you are willing to keep it there. (Beware! Interest rates can and do change). Shop around. Look at all the banks in your local area see Selecting A Bank . Research and compare the various accounts/programs and interest rates and then open your account.
There are different Types Of Savings Accounts. Consider how often you plan to deposit money and how frequently you plan to withdraw it. Then shop around to find the best type of account for you with the highest interest. However, be realistic because banks will penalize you if you take money out before it is due if you choose certain types of savings accounts. Rule of Thumb: The more you put in, and the longer the bank gets to hold your money, the more interest you will receive. The easier it is for you to withdraw your money, the less interest you will earn.