When you open a savings account, here's what happens.

1. Call several banks to find one that will pay interest on your savings, even if you don't have a lot of money to put into a savings account right now.
2. Go to the bank or credit union you've chosen. Bring the money you want to put in the savings account. Also bring a photo ID and your Social Security number or tax ID number. (If you are under 18, ask your parent or guardian to go to the bank with you, because the bank will probably require an adult's name on the account; also ask your parent or guardian to bring a photo ID and their Social Security number or tax ID number.)
3. Ask a banker to help you set up a savings account. The banker will fill out some paperwork and give you a savings account number.
4. The banker will deposit your money into your savings account.
5. Ask the banker for a booklet to keep track of how much money you have in your savings account. Every time you add money to your savings account, or take money out, write it down in the booklet.
6. The money in your savings account will start earning interest. Interest is the money that a bank or credit union pays you to keep your money there.
7. If you have a job, you can ask your employer to send part of your pay directly to your savings account every month. This is called direct deposit.
8. Watch your money grow! Here's an example:

• Nikki puts $10 a week into her savings account.
• In one year, she will deposit $520 into her savings account ($10 x 52 weeks = $520).
• The bank pays 2 percent interest, compounded monthly, on her money. That equals $525.12.
• At the end of the year, Nikki will have $542.73 ($520 + $22.73)
• At the end of 5 years, Nikki will have $2,734.

Tip: If you know you won't need your money for a year or longer, you might be able to earn more interest if you get a certificate of deposit (CD) at the bank. Ask a banker how a CD works.