Need advice, College student that needs to start Saving Money Help?

I was told I should start saving at an early age by my college professor, I already have an active checking account with Bank of America, but the interest rate is like .025 so I started looking into credit unions and money markets. The APY rates in my area are about 1.00% for credit union savings accounts and 1.50% for money market accounts.

1) Which account is more beneficial for me in the long run?

2) Does the APY rate go up as I gain tenure? or will it always stay at 1.00% (which doesn%26#039;t seem like much at all)

I live in Southern California, any Credit Union recommendations would be greatly appreciated

Need advice, College student that needs to start Saving Money Help?care credit

I doubt your professor is talking about a bank checking or savings account.

1) i would suggest an IRA. This is meant for retirement and if you study what it takes to save for your retirement, you will understand why it is important to start NOW! At your age you can invest aggressively and look for an average of 10% or more a year in an IRA. Sit down with an adviser to help find your comfortable investments.

2) APYs will change as the Fed changes rates. CA has a long reputation of low rates. Remember, that%26#039;s a good thing when you want to take loans out. check bizrate.com for the best rates.