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304 North Cardinal St.
Dorchester Center, MA 02124
Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
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Having a savings account is a key part of financial wellness. It allows you to save for specific financial goals while earning interest on your money. It also keeps your savings out of your checking account, where you might be tempted to spend it.
As common as savings accounts are, you may not know some of their key features. Understanding how they work can help you get the most out of your account—and maximize your savings. Here are eight must-know facts about saving money.
The right type of savings account for you will depend on your savings goals and how accessible you need your funds to be. Below are some options:
It isn’t uncommon for banks and credit unions to require a minimum opening deposit. This amount varies from one financial institution to the next—and some accounts don’t require it at all. Opening deposits for brick-and-mortar accounts usually range anywhere from $25 to $100. Most CDs require $500 to $2,500 or more to get started.
When you put money into an investment account, normal market activity can cause your balance to bounce up and down. Savings accounts offer much more stability. The Federal Deposit Insurance Corp. (FDIC) insures bank savings accounts for up to $250,000 per depositor, per insured bank and ownership category. The National Credit Union Association (NCUA) offers similar protection for accounts at credit unions.
Some financial institutions charge fees if you make more than six electronic transfers or withdrawals per month. These policies are designed to discourage consumers from withdrawing their funds. If you’ve met your monthly limit, you might avoid a fee by making an ATM withdrawal. However, ATM access may be limited if your account is with an online bank.
Savings account fees vary depending on the financial institution—and some charge low fees or none at all. Some common fees include:
Shopping around and comparing different savings accounts can help you avoid unwanted fees.
Since savings accounts earn interest, they can help you supercharge your savings and reach your financial goals faster. You can use a savings account to:
You can use a mix of different types of savings accounts. For example, you might put your emergency fund in a high-yield savings account and your home down payment fund in a six-month CD. This allows you to keep money for different goals separate and earn higher yields on money you expect to keep socked away for longer periods of time.
Retirement accounts offer benefits that aren’t available with savings accounts. The main ones are:
Funding your savings account might not always feel easy. Here are some common hurdles to saving—and how to get over them:
You can use multiple savings accounts to boost your cash reserves. No matter what your strategy looks like, be sure to understand all account fees and deposit requirements. That can help you avoid unwanted surprises and get the most out of your savings.
At O1ne Mortgage, we understand the importance of financial wellness and are here to help you achieve your goals. Whether you’re saving for a down payment on a home or looking to refinance, our team of experts is ready to assist you. Call us today at 213-732-3074 for any mortgage service needs. Let us help you make your financial dreams a reality!
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