Your Personal Finance Guide: Types of Savings and How to Use Them
Are you wondering what types of savings accounts you can benefit from?
Savings accounts are useful components of a good financial plan. You can save for anything, a down payment for a house, a down payment for a car, new clothing, and more. As long as you have a place to put your savings, you can quietly watch it grow from the sidelines.
But what savings account should you get?
By weighing the pros and cons, you can find the account that is right for your needs. If you are wondering what type of savings account you can benefit from, this short and simple guide is for you.
Traditional Savings Account
When you think of a savings plan, you probably imagined a traditional savings account. These are at brick-and-mortar banks or credit unions, are easy to open, and easy to withdraw from. While they don’t have a high APY, they are great for traditional savings.
Online Savings Account
Similar to a traditional savings account, online savings offer an accessible way to monitor your savings from your smartphone or computer. You can track your savings goals, manage your money, and save for that special purchase that you’ve been wanting.
Money Market Account
Money market accounts combine the features of a savings account with the features of a checking account. You’ll get better rates than traditional savings account while being able to use your debit card and write checks from your money market account.
For wealth management advisors, check out the Asset Advisory Group.
Cash Management Account
A cash management account is a good way to keep cash available if you wanted to invest in your retirement or brokerage account. You have all the convenience of a checking account with some benefits of a savings account.
High-Yield Savings Account
If you want to earn more on your money than a traditional savings account, you need a high-yield savings account. This is a money-saving strategy that pays off big in the end. A high-yield savings account has a high APY, allowing you to grow your funds without giving up liquidity and safety.
Specialty Savings Account
If you want to save for a specific reason, you can open a specialty savings account. You are saving for a specific goal, which is why it’s only for certain types of people.
Certificates of Deposit
One saving strategy is to place your money in a certificate of deposit account. In exchange for keeping your money for 3 months to five years, you will get a higher return on your savings account.
These Are the Types of Savings Accounts You Can Benefit From
These are the types of savings accounts that exist today.
A traditional savings account or an online savings account is essential to your financial plan. You can also get a money market account, a cash management account, or a high-yield savings account. Specialty savings accounts and certificates of deposit are part of a good financial strategy.
Choose one or more of these savings accounts and start saving today.
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