BernetteThe question of what savings account type is right for you depends on several factors. Here are three things to consider.
Disclaimer: This post is not financial advice or financial planning advice. It serves as information only and readers are responsible for researching further based on their particular needs and situations.
What Are Your Overall Savings Goals?
What will you use your savings for?
Consider what you need for your emergency fund, long-term savings, and short-term savings. You may even want to consider whether you will have multiple short-term savings accounts.
Savings Account Access: Can You Wait for Your Money?
Do you want to be able to set up automatic deposits?
Do you need to be able to get your money out quickly, as in same or next day?
Do you need a debit card?
If you need immediate or near immediate access, be sure to double check how to access and move money in any account you are considering. Some high yield savings accounts don’t have debit cards and require waiting for a transfer to go through.
What’s Your Target Return on Your Savings Account?
What is an acceptable interest rate on the account?
Are there fees that can eat at your total earnings?
Is the interest rate a promotional rate? If so, how long is it good for and what will it be after the promotion ends?
If debt is preventing you from saving, deal with that first, especially if interest rates on your debt are higher than rates you could earn on savings.
If you’re ready to start saving, understand your savings needs and goals. To help, get the Money Mojo Workbook, an excellent resource for planning and setting financial goals and creating a plan to reach them.
What first step will you take to begin saving for the future you want?
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