Whether you're planning on financing a new car, a college education, or early retirement, it's smart to look closely at your financial goals and develop a solid savings plan. Today, there is a wide range of savings options available - each one designed to meet your specific needs.
Savings accounts are a great way to start saving immediately. Savings accounts offer:
- Flexibility. In an emergency, your money is available when you need it.
- Security. All savings accounts are FDIC-insured up to $100,000.
- Growth. By setting up an automatic deduction from your checking account to your savings account, you can start gradually building funds for future investing.
Money market accounts
In a money market account, your funds have more earning potential
than in a traditional savings account. Money market accounts
- Liquidity. This is a good place to keep three to six months of emergency cash.
- Current market interest. Since their market value doesn't change, these accounts offer the potential for greater earnings.
- Growth. The more you save, the more you can earn.
Certificates of deposit (CDs)
With a CD, you can lock-in high interest rates for a specified term. Yet unlike a savings or money market account, you must commit to keeping your money in these accounts during the agreed upon time. CDs offer:
- A low-risk investment. CDs combine long-term savings with FDIC security.
- A solid choice. CDs generally secure higher interest than regular savings or money market deposit accounts.
- Increased growth. You also receive higher returns for higher balances.
IRAs and 401(k)s
These are excellent choices for your retirement savings. IRAs and 401(k)s offer:
- Tax-deductible contributions. (see www.irs.gov for details)
- Tax-free withdrawals. (see www.irs.gov for details)
- Maximum return. Receive compounded investment earnings year after year.
- Instant savings. This is arguably the easiest way to save for retirement.
*Certain conditions apply
Put your savings online
When you bank online, you can get up-to-the-minute balance information on all your savings accounts, transfer money or review current interest rates. In addition to being fast and easy, online banking is a convenient way to compare the wide variety of savings plans being offered today.