What is the value of a savings account? For many people, savings can rescue them from a devastating, unexpected expense, like a big medical deductible, a missed paycheck, or an emergency auto repair.
Savings accounts hold your money and earn you interest over time – that’s how you can use a savings account to build wealth and anticipate urgent, unpredicted expenses.
For many people, it can be difficult to create a household budget that leaves room for savings. But even if you begin very, very small, the benefits of starting a savings account can be very, very rewarding in the long term.
Before opening a savings account, be sure to explore the features, fees and interest rates at competing credit unions and banks. You can choose from a savings account with a fixed term or without. For example, a fixed term account typically means the funds are not accessible until the end of that term. A savings account without a fixed term means the money you invest is easily accessible. That means you can withdraw or deposit should you need to.
Be sure to ask about any fees associated with the savings account. The big banks often charge maintenance fees; most local credit unions do not.
Most important, open a savings account that pays the most interest at an institution that is fully federally insured, so you know your money will grow in a safe, secure, and accessible institution.
In other words, when you decide to open a savings account – and you should start soon – make sure the account matches how often you will need to access your funds, the features you would like to have, and what fees you may have to pay. It’s up to you to decide which account will help you reach your financial goals now and in the future.
Here’s a suggestion: check out the “Reverse Money Market Account” available to members of Noble Credit Union. It reverses the way savings interest is paid. Instead of depositing a big amount for a long term to earn the highest interest rate, Noble’s Reverse Money Market Account pays the highest rate (3% Annual Percentage Yield) on the first dollars you invest. All you have to do is deposit as little as $100 to get started.
Look for the Reverse Money Market Account at Noble Credit Union, a Forbes Best-in-State Credit Union. They offer members full access to a wide range of financial services, including checking and savings accounts with no monthly fees, online and mobile banking, low rate MyRewards VISA credit cards, even budget management. For more information about membership in Noble Credit Union, call (559) 252-5000 or visit NobleCU.com.