Savings Account Benefits Go Beyond Securing Emergency Funds
Setting aside a portion of income is the best way to be financially secure. No one knows what will happen in the future as emergencies or unexpected events may occur anytime. The sad news is, about 65 percent of Americans don’t have a savings account, which causes them to face huge financial challenges in retirement. Here are the 5 major savings account benefits:
Top Savings Account Benefits
- Preparation of Unexpected Expenses
Life is full of unexpected events. Someone in your household may develop health issues, your car can breakdown, your home may develop problems that need to be quickly fixed, etc. To pay for these unplanned expenses without going into debt, you need to have a savings account. You can begin by saving at least 20 percent of your monthly income. This way you’ll have enough money available to cover emergencies.
- Your Money Will Always Be Safe
Depositing your money into a saving account is better than keeping it somewhere in your home because it can get lost, stolen or damaged. Money in your savings account is protected by FDIC insurance. More importantly, your money will earn interest.
- It Helps to Achieve Your Dream
There are certain items you simply can’t afford to buy with your monthly income, such as automobiles, a nice vacation, or your dream home. You can accomplish your purchasing dreams by opening a savings account with your local bank. Once you open a savings account, start by depositing as little as 10-20 percent of your net income. For instance, if you want to buy a car worth $20,000, you can begin saving $2,000 of your monthly net income, and within 10 months, your will have enough to purchase the vehicle.
- Your Money Will Earn Interest
The cash deposited in a savings account multiplies with time. Banks have different interest rates on savings accounts, so do your research before you open an account with your financial institution. For example, Clark County Credit Union offers different rates to its members depending on factors such as time, opening balances and even the type of the account.
- Helps You to Develop Healthy Financial Habits
Ultimately, having a savings account keeps you from impulse-buying. Try to set aside a consistent percentage of your net income every month. This habit will give you peace of mind because you’ll know that you have cash in the bank to cater for any urgent financial needs that may arise.
Start Saving With CCCU
If you wish to start saving and secure your financial future, visit one of our 6 branches today to learn more about savings account benefits, as well as how to open your CCCU savings account. You can also contact us at 702-228-2228 to talk to a financial advisor.