It’s 2014 yet many of us still resort to stashing money under our bed mattress as our way of “saving”. Having a healthy and hearty savings account with your bank is one of the best decisions you can make for yourself.
A savings account can offer numerous advantages over other savings options. Consider these savings account advantages before putting your money in a CD or other investments.
Stack Money While Spending Money
Having a savings account, while having a checking account, allows you to stack and save your money while also spending money. If one chooses to only use their savings account to hold extra income that they wish to save, and spend money only from their checking account, this allows for you to stack money while spending money…..and who doesn’t love spending money?
Keeping Your Money Liquid
Savings accounts and money market accounts allow you to withdraw your money at any time, which is not much of an option with bank CDs or long-term investment options. Savings accounts allow for unlimited withdrawals by teller, mail or ATM, but federal regulations limit you to six telephone, electronic or preauthorized transfers per month. Some banks only allow you to make up to three transfers a month from your savings account. This helps you put a limit on what you take out from your savings. Keep in mind, only three of these withdrawals can be by draft, check or debit card. Nevertheless, you can access the money in your savings account when you need it most.
Great For Emergencies
We all have emergency situations in life, and a savings account allows for you to always have a backup plan when faced with a financial emergency. When hit with a life situation that puts you in a financial bind, it helps to have some money stashed away that you can access at any time.
Get Started With Minimal Cash
If you don’t have a lot of money to invest, you can open your savings account with as low as $25! Savings accounts usually require a minimum amount to get started, sometimes $1 to $25. Many banking institutions require significantly more money in savings accounts, and will charge a considerable monthly fee if you don’t maintain that balance. Simply ask or read the details before opening your savings account.
FDIC or NCUSIF Insured
Your money is extremely safe in a savings account! A savings account is a great location for secure saving. Depending on if your money is in a bank or credit union, the Federal Deposit Insurance Corporation, or FDIC, or the National Credit Union Share Insurance Fund, or NCUSIF, will insure your savings account money up to $250,000.
So what are you waiting for?! Get started with saving for your future. Who doesn’t want a healthy bank account?