Most people work so hard to have money for their education, retirement, home renovations, and so on. Where you keep your money will affect your funds so much; you might earn some interest, making your money grow.
Banking institutions have different guidelines, though. In some cases, you might have to wait a little longer before you can access your funds.
If you are curious about the best ways to keep your money safe, read on, as this guide will explore the best places to store your money.
Where to Keep Your Money?
A savings account is the safest place to keep your money. However, if you are the kind of saver who does not believe in banks, don’t worry, as there are several options available for you, too. Depending on what your plans and goals are, here are some of the options available.
If you feel you will need your funds anytime, it’s better to keep them in a checking account. Here, you can use your debit card anytime to withdraw your funds. On the other hand, if you are able to control your spending, you can keep cash in your pocket; there is no harm in that. If you are going with banks, be sure to keep an eye on it to avoid incurring overdraft fees.
The question that most people have is which bank should I go for? From online banks to credit unions or community banks, there are several options out there, as long as they come with incentives and other rewards. Are you still lost for choice?
With so many options available on the market, it can be challenging to make a choice. However, keep the following in mind: are there fees such as ATM fees, annual fees, or withdrawal fees on the account? Online banks, credit unions, and community banks usually have the least amount in fees since they can easily be accessed online. Read your fine print carefully to confirm if there are any charges.
Most people keep their emergency fund in a savings account, but if you are a spendthrift, this might be a bad idea. Emergency funds should be for things you never anticipated. As such, if you feel you can’t control the urge to withdraw, open a separate savings account. If possible, begin with a different institution or an online savings account. They are quick and easy to open.
As always, savings should always be your number one priority, regardless of how much you earn. Setting up automatic transfers will be the easiest way to achieve this. Also, if you are self-employed, check into IRAs.
If you want to save for your child’s education, open a 529 Savings Plan. This account is specifically for saving for someone’s future education; it can be your relative, child, or grandchild. There are two types of 529 plans; savings and pre-paid. Before you zero down on any specific plan, do your research and ask your bank for clarification.
If you trust yourself enough, you can keep money in your wallet, but this method has its limitations. Will you keep your retirement savings on you all the time? How about your education savings? Likewise, if you want to put your money in a bank, first do some shopping around and compare to see which one works best for you.