Update:
For anyone else who experiences this problem...
1. I went ahead & deleted my google account & all my contacts list
2. I added my google account again
3. I synced my google account (like you would do when you first setup your phone)
& voilą, problem solved! When entering a new contact it would save in my contacts list!
Btw, I'm still curious as to what the problem was. Why did it do that? How come it wouldn't save in my contacts list when it said saved, but show up in my google account? Also, I can't recall, but if I were to send a text it would pull the persons name up even though they didn't show in my contacts list.
Glad I didn't have to reset my phone as I was getting really frustrated!!
