Nearly 70% of Americans have less than $1,000 put away in a savings account as of December 2019. It’s become harder for us to keep our money put away instead of continually spending it. In the off-chance an emergency or significant circumstance arises, many Americans are not prepared. Savings accounts are imperative in order to be financially proactive, and here’s why:,
- Easy Access
Savings accounts provide a liquid option for customers to keep their cash stowed away yet accessible in case of an emergency. If customers decide to withdraw more, they may be subject to an excessive withdrawal fee set by the bank. Bottom line: savings accounts are meant to save money, not to spend it. However, in the event of an emergency, they provide that accessibility.
- Keeps Money Safe
Having a savings account with a bank offers a multitude of benefits: physical security for your excess cash, insurance on your cash, and more. It’s best to keep your extra cash in an account at a physical bank, where it is secured and protected. Having money laying around or kept away at home makes it subject to various accidents, such as a house fire, flash flood, or simply losing it somewhere without realizing it. Banks are also going to be FDIC-insured, so you can expect your money in your savings account to be kept safe up to $250,000 (read more about FDIC insurance guidelines here).
- Growth Opportunities
Typically, traditional savings accounts do not earn much from their interest. However, there are a number of options available for customers looking to both save and invest. Money market accounts are a perfect way to earn higher interest while having the easy access of a savings account. Certificates of Deposit (CDs) are great long-term investments that will generally earn higher interest than other accounts. Customers need to determine what their primary needs are with putting away their money and choose an option that best suits their situation.
For more on FSB’s CD rates, visit here: www.fsb1879.com/rates/deposit-accounts#deposit-cd-specials.
For more information on our savings options, compare FSB savings accounts.