There’s never a bad time to start working toward your savings goals! With a wide range of Savings Account options available, it can be challenging to determine which type of account is right for you. Different savings accounts come with various benefits designed to serve account holders with their short- and long-term savings goals. Check out the benefits of these common savings account options and choose the best to kick off your savings goals today!
Traditional Savings Accounts
Among the most common savings accounts offered are Traditional Savings Accounts, which just about everyone should have. Almost all banks offer these in various forms tailored to the specific user. For example, an eChoice Savings Account is a traditional account tailored to avid digital banking users, or a Classic Savings Account is best for those seeking a traditional banking experience. With a typically low-interest rate and easy access to your funds through ATMs or online banking, these accounts are great for smaller, everyday savings goals. In addition, those who want to save money without taking on any risk may benefit from this type of account, but they should keep in mind that the low-interest rate means any funds saved will grow slowly over time.
High-Yield Savings Accounts
Those with larger savings goals and who need instant access to their funds may benefit from a High-Yield Savings Account. These accounts offer higher interest rates than traditional savings accounts, allowing your savings to grow faster with the convenience of online banking and flexible withdrawals. The requirements for opening such an account can vary, but a Premier Choice Savings Account can be opened with as little as $10!
Money Market Accounts
A Money Market Account will traditionally offer the best available rate on your savings, perfect for larger long-term savings goals. With a limited number of monthly checks allowed access to funds is somewhat limited. However, this is beneficial to avoid overspending savings. In addition, these accounts will also require a larger initial deposit and minimum daily balance, which will pose no problem for significant savings goals. As with any other account, we recommend sticking with a DIF and FDIC-insured institution, so 100% of your funds are protected from loss.
Certificates of Deposit (CDs)
Looking to lock away your money for a set amount of time? Certificates of Deposit (CDs) are time deposits that offer a higher interest rate than traditional savings accounts in exchange for committing your funds for a set period. In most cases, the longer the term, the higher the interest rate, but in some cases, banks will offer CD specials, which provide a higher rate for specific time periods selected by them. These are best for those willing to lock away their money for longer and can afford to do without access to their funds for a set period. More specifically, these are great for significant saving goals with a time frame in mind, such as saving for an education with a start date or planning to buy a home by or around a time period.
Ready to start working towards your savings goals? Find the right Savings Account that fits your unique goals at Mechanics Cooperative Bank! Contact us today to get started.
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