It’s never too early to begin saving money, and a savings account is the easiest way to get started. According to banking professionals at River Bank in La Crosse, WI, it’s a great way for anyone to begin building their savings. Aside from making money over time, many savings accounts are low maintenance and offer convenience, making it even simpler to save intelligently.
3 Benefits of Having a Savings Account
1. Earning Interest
The primary reason people set up savings accounts is to gain interest. While your money is sitting in the bank, it gains value based on a set interest rate. The more you invest, the more you’ll make, and the interest rate may increase at certain points. It’s a great, worry-free way to grow your savings while maintaining easy access to your funds.
2. Easy Access
More advanced savings options such as a 401(k) plan or IRA come with stiff penalties if you withdraw your savings prematurely, and the money isn’t immediately available. The same goes for savings invested in stocks or through assets. While these options may have a higher return, they can’t compare to the accessibility a savings account provides. At any time, you can withdraw your funds from a savings account, making it extremely easy to make big purchases or have cash on-hand for emergencies.
While real estate, stock, and bond investments can offer a higher return, they can also devalue and vanish. This is the case for many non-banking savings options; however, a savings account is protected. Almost all accounts will carry FDIC insurance—up to $250,000—meaning your savings will never devalue and that you don’t have to worry about losing your money.
Whether you’re looking to open a savings account or simply need a new banking option, turn to the professionals at River Bank. Their innovative digital format makes banking easier than ever, and they offer a variety of financial solutions to fit your needs. Call (608) 788-6300 today to speak with a banking professional, and visit their website to learn about their personal loan and Internet banking services.