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- Cashero's Regular Savings Account
- How Cashero's High-Yield Savings Accounts Work for You
- Cashero's Certificates of Deposit (CDs) Account
- About Low-Risk Money Market Accounts
- How Cashero's Specialty Savings Accounts Help you Reach Your Goals
- Earn from your savings!
- Why you should save money
Reading time: ~4 minutes
Having a save-first mindset is one of the best things to do for your hard-earned money. After working for money, it is a prudent thing to let the money work for you. When you put your money into savings, it earns interest. Moreover, the risk of losing your savings is usually low.
So, where can you put your savings to earn interest for you? With savings, you get to secure your future. These kinds of investments come with different risks. However, the idea is to grow your money gradually. In most cases, there is little or no risk associated with savings.
Today, there are various savings accounts where you can stash your money to earn interest. Here are the five best places to put your savings:
When you think of savings, think of starting small. In that case, start by opening a regular savings account. Savings accounts are primarily available in banks but also in credit unions as well. Therefore, you can open a savings account in these two places and put your money there.
Money in a savings account is safe and comes with low risk. The federal deposit insurance corporation (FDIC) insures the savings so there is little worry of losing your hard-earned cash. The financial institution holds the money for the specified period until you can withdraw it.
You can also open a high-yield savings account to earn interest with your money. This account has better returns than a regular savings account. However, you may need to make a large initial deposit to qualify for these high returns. Just like any other savings account, access to the funds may be limited.
A high-yield savings account is available in most financial institutions, especially to loyal and valued clients with existing accounts. However, you can shop around for the best rates in the market for a good return on your savings. In this age of technology and the internet, you can work with online savings accounts.
Certificates of deposit accounts are also available in credit unions and conventional banks. Additionally, they are also insured, and that makes them a good investment. And they come with high-interest rates better than regular savings. You can get these benefits when you deposit enormous sums for an extended period.
When you decide to put your money in a CD account, you must wait until maturity. Otherwise, you will lose part of the interest should you withdraw from the savings plan. Typical CD savings last from six months, a year, or five years.
Open a money market account to earn interest with your money. This is a kind of mutual fund targeting low-risk securities investments. Money market funds are among the most low-risk funds you will find out there. They are comparable to short-term investments. That said, you should expect returns of similar interest rates.
Money market funds offer savings options that are regulated through the Securities Exchange Commissions and not insured by FDIC. Money market funds are available in most banks, brokerage firms, and mutual funds. Again, there are no guaranteed interest rates, and earnings depend on researching and choosing a good-performing money market fund.
A specialty savings account is a money savings account tied to specific goals. You get to save for something specific rather than earning interest on money that you do not want to spend. Sometimes, these specialty savings accounts are designed around certain people instead of a goal. Typical specialty savings accounts include opening a child’s savings account, student savings, or custodial savings accounts. You can tie your savings to a specific goal or person. You can open these accounts in investment companies, credit unions, brokerages, and conventional banks as well.
There are many ways to let money work for you. Earning interest with your savings is a sure way to earn passive income rather than working for all the money you need. Make use of these places to save your money and grow your wealth!
Why you should save money
Being able to save can give you freedom
If you don’t have a specific goal for the money, it can be challenging to put some of your cash into a savings account. Isn’t it easier to spend what you want today than save for later? Among the many reasons to save money is that you might find something in the future that you want to save for, even if you don’t know what you’re saving for right now. You can do so many things in life: buy a new car, build a new house, send your child to college. It’s also crucial to have a little cash set aside in case of emergencies and unexpected costs.
It’s all about your own flexibility and choice in life. It is stress-free to do what you want when you have money in the bank. Think about how you’ll feel if you save money instead of feeling stuck in a particular position or situation because you are dependent on a paycheck.
Your financial goals will determine how much you should save. You might want to pursue a specific goal, such as taking a year off to travel. If you are not planning to make an income during this time, you should estimate how much you’ll need to cover the cost of travel and your regular living expenses.
For example, suppose you want to gain flexibility from saving money. In that case, you can set aside a certain amount each month (hint: automate your savings) based on how much you can afford to save in addition to retirement and an emergency fund.
Taking calculated risks is a benefit of saving
It is essential to save money to build cash reserves that will allow you to take calculated risks with less stress. Savings can make it harder to follow your passions if you don’t have any. One example is starting your own business. You’ll need financial backing to start up a small business.
Thank you for reading!