Three Things to Know About Savings
Building your savings is one of the best ways to achieve peak financial wellness. Fortunately, savings can take different forms depending on your priorities. And as long as you entrust your hard-earned dollars with a federally insured financial institution, like BluPeak, you know your cash will be safe as it earns dividends over time.
Save for an emergency. Yes, you should consider regularly contributing to an Individual Retirement Account (IRA) or an employer’s 401(k) throughout your wage-earning years to ensure you live comfortably once you leave the workforce. But it is equally wise to build an emergency fund that can cover three to six months of living expenses at a moment’s notice.
A traditional savings account is great for setting aside funds while keeping them easily accessible for urgent, unexpected expenses that life throws your way.
Saving is a life skill. The sooner you get into the habit of saving, the easier it gets. Youth savings accounts are designed for just that reason. You can also open a regular savings account for the specific purpose of a future vacation, or the inevitable shopping spree that will accompany the upcoming holiday season.
Plus, when you set up automatic deposits or transfers into those accounts through online or mobile banking, saving this way becomes effortless!
Save on Your Terms. We talked about how a basic savings account ensures liquidity. But money-market accounts are another option for keeping savings easily accessible, while typically offering a slightly higher yield than most traditional savings accounts.
If you’re able to set aside a chunk of your stash for a longer period, consider opening a term certificate1, which frequently offers a higher annual percentage yield than the other types of savings accounts we’ve mentioned—as long as you keep the money deposited for a predetermined length of time. These “terms” can last as little as several months to as long as 10 years, and usually, the longer the term, the higher the yield.
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