If you are struggling to meet your financial goals, you are not alone. In fact, the savings rate among Americans 35 and younger is negative 1.8% of their income. Learning the characteristics of a savings account can help you get on track to start saving. Read on to learn the four most important characteristics of a savings account and see how easy saving can be.
If you're developing your financial plan, here are four features that savings accounts offer:
1. Earns interest. Your balance earns interest in a savings account. This characteristic makes opening a savings account a great option for maximizing excess funds. Consider moving extra money into a savings account to earn interest rather than leaving it in your checking account.
2. High liquidity. You can easily access money in your savings account through an ATM, over-the-counter transactions or online transfers. Note that the Federal Reserve Board limits the number of monthly withdrawals from your savings account to six.
3. Automatic Deposits and Transfers. You can make saving money more convenient with automatic deposits from your paycheck and/or automatic transfers from your checking account.
4. A "rainy day" account. Savings accounts are good vehicles to help you prepare for emergency reserves. Experts recommend you that save about six months' worth of expenses in case of sudden job loss, medical issues or other unexpected expenses. A savings accounts might be the right product to help you create your "rainy day" fund.
A savings account can help you get on track with your financial goals. Consider opening a savings account today.
Opening a high yield savings account with Synchrony Bank is easy. We provide quick withdrawals online, over the phone or with an ATM card.
In addition to our award-winning customer service, customers also find that we have no minimum balance or monthly service fee on our savings accounts. Our accounts are FDIC-insured up to $250,000 per depositor for each ownership category.
To learn more about the characteristics of a savings account, call Synchrony Bank at 1-844-345-5789 or find us online.
The Motley Fool: https://www.fool.com/investing/general/2015/02/02/heres-how-much-the-typical-american-saved-last-yea.aspx
Federal Reserve: https://www.federalreserve.gov/boarddocs/supmanual/cch/int_depos.pdf
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.