When it comes to saving money, it's never too early to start.
"The earlier in life you can start saving money you develop the habits you'll need for your entire life," said Chip Gilmour, Lubbock National Bank Senior Vice President of Marketing and Business Development. He said many banks allow parents to open low-cost or free savings accounts in their toddler or teens name.
There are also savings accounts advantageous for 20-somethings.
"Possibly a CD which would be a savings account which pays a little higher rate of interest, probably averaging around one percent," Gilmour said.
Gilmour also suggested an online account for tech-savvy savers in their 20’s.
"I think the younger generations are more comfortable with the internet than they are talking with each other. Consequently, that gives them some comfort just to do it online," Gilmour said.
Savers on the path toward making bigger money decisions in their 30's may want to go beyond an online relationship with their bank.
"A brick-and-mortar savings account would be an account at some branch bank," Gilmour explained. "I think as you develop relationships with other people and other bankers then you're going to position yourself so that you can take advantage of what banks have to offer.”
As savers mature into 40's and 50's, they need to make retirement prep a serious priority.
"Certainly if you work for a company with a 401k or some kind of pension plan and they make it available to put some money aside wherever you work for later on in life, everybody should do that," Gilmour said.
For retirees, Gilmour suggested signing up for an online IRA to conveniently monitor and manage cash flow.
"You can put money away tax free and defer those dollars until you retire," Gilmour said.
The national average is .11 percent for a savings account annual yield. Because that's so low, Gilmour advised looking at other options."Banks have checking accounts with interest rates attached to those checking accounts. If you use your ATM card nine times or 12 times then you can qualify for interest in the one percent to 1.35 range which is certainly better than a savings account," Gilmour said.
Gilmour added even if you’re not yielding much right now on a savings account, it’s still a great habit to continue to save in hopes that interest rates escalate in the future.