Savings Accounts

If you're not saving 10% of your military salary, you aren't saving enough. The earlier you start saving, the less you'll need to set aside every year to meet your goals. Allow your money more time to grow - the gains on your invested savings will build on the prior year's gains. That's the power of compounding, and it's the best way to accumulate wealth towards your military retirement.

Saving at least 10% of your annual salary for military retirement is recommended, but the older you start saving, the more you'll need to save. If you start at 50, you may need to put away 30% a year or more. Your best bank is one that that pays high interest on your savings accounts, and facilitates direct deposit to make your saving from each military paycheck an automatic habit.

Banks typically offer two kinds of savings accounts: Passbook and Statement. Savings accounts generally pay lower interest rates than money market accounts or CDs. Passbook Savings offer a low interest rate and may charge minimum balance fees. With Statement Savings, instead of a booklet, your bank mails you a statement documenting all of your transactions, on a monthly or quarterly basis. Statement Savings accounts also charge minimum balance fees.