Why a Savings Account is Important
It may be surprising, but few Americans are saving. About 65% of Americans have little or nothing saved up.
Here at Credit.com, weâre passionate about helping others secure their financial future. We want to help you save money, which is why we now offer savings and money market accounts through trusted FDIC insured banks to help you save money and achieve financial security.
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Why Saving Money is Important
Everyone is capable of saving money. The biggest hurdle changing financial habits so that this is a possibility. There are many reasons for saving. Here are some of them:
- The What Ifâs: there are many unknowns in life. You never know when youâll lose your job, have a medical emergency, or need to make emergency car repairs. A savings account can help add relief for those âwhat ifâ moments.
- Helps You Make Calculated Risks: if you decide to start a business or invest, your savings account can help you do so. Your savings can support you during your new venture before you get your first paycheck or see a return on your investment.
- Provides Freedom: aside from an emergency fund, a savings account provides you with more financial freedom. If you consistently save, youâll eventually find you can be more independent. Before saving, you may have felt stuck but your savings allows you to do more.
- Feeling Secure: saving money helps you become financially secure. Having money makes life easier. If youâre in a pinch and desperately need money, you can rely on your savings. This is better than taking out a loan or using a line of credit that may be difficult to pay off.
Advantages of a Savings Account
Your savings account is an investment. Youâre investing in yourself when you actively make deposits into one.
You may feel that you donât have enough money to open a savings account. Most savings accounts donât require a huge deposit â some are as little as $25. No matter how much you are able to put into your account at a time, it all adds up. Online savings accounts pay higher interest than brick-and-mortar banks, so you can make even more money. There are several benefits to opening a savings account.
- The Majority of Accounts will Accrue Interest: many savings account will accrue interest over time. If you find a bank that pays higher interest, this can really add up. Even though it may not seem like much, every little bit helps.
- United States Savings Accounts are Insured: opening a savings account is low-risk. Any financial institution in the US that is insured by the FDIC or NCUA is obligated to protect your money to a maximum of $250,000. At com, we offer accounts through institutions that are insured by the FDIC or NCUA.
- Your Money is Safer: if you keep a significant amount of cash in your home, then you are at risk of losing it – either by robbery or home damage. Losses like this arenât usually covered in homeownerâs or renterâs insurance. Once itâs lost, itâs lost for good. If you keep your money in an account, itâs insured.
- Money is Easy to Obtain: The majority of savings accounts can be accessed 24/7 by ATM. Online banking also makes it easier to transfer funds from your savings account into your checking account. However, there is a monthly limit on how many transfers you can make per month.
At Credit.com your information is secure and private. We can help you set up your savings account or money market account. But remember to do your research to make a good decision on who to open an account with.
One with a high APY will accrue more interest, adding more money to your account. Itâs also important to look at what the minimum balance is to avoid any penalty fees.
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Lastly, a savings account can help ensure your financial security and can be opened within a few minutes. Open one today and watch your money grow.
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