Community banks provide an array of personal savings services to help clients meet their financial goals. Savings services are beneficial when planning for short or long-term expenses. Many local banks offer personalized options for free savings accounts to help you manage and grow your finances. Here are six personal savings services offered by local banks:
Traditional Savings Accounts
Traditional savings accounts are ideal for savers who need to save money for the short or long term. A regular savings account can be opened with a low minimum deposit, making it a good option for first-time account holders. This account earns interest, but rates are often lower than other savings services. Many banks implement maximum withdrawal amounts, and fines may be charged if this limit is exceeded. Regulations might exclude in-person withdrawals, so it is best to review your bank’s regulations before making large withdrawals.
High-Yield Savings Accounts
High-yield savings are often the preferred choice for savers looking for higher interest rates while avoiding monthly account fees. These free savings accounts offer a higher Annual Percentage Yield (APY) than a traditional savings account to increase your financial growth. Many high-yield accounts can be managed through a website or mobile banking app. These accounts may also be subject to fewer maintenance or withdrawal fees.
Money Market Accounts
Money market accounts combine the features of a traditional savings account and a checking account. This makes it easy to access your money with a debit card even while it earns interest. Interest rates for money market accounts are often similar to those of high-yield savings. Check with your bank for monthly withdrawal limits or minimum balance requirements.
Certificates of Deposit
A certificate of Deposit (CD) is an opportunity for savers to earn higher interest rates than many other account types. CDs are opened for a set period of time, during which the deposit earns interest at a predetermined rate. During this period, funds are inaccessible, and early withdrawal often incurs a penalty fee. After a CD reaches maturity, you can withdraw the savings to reinvest in a new CD or move the funds to a different account.
Cash Management Accounts
Cash management accounts are designed for investment, which is a good way to save and earn money in the long term. These accounts are usually offered by a bank with brokerage services and can earn higher interest. Money held in a cash management account can be used to increase your savings, invest in stocks, or pay your monthly rent. These accounts keep your money fluid and easily accessible while also taking advantage of high interest rates or investment opportunities.
Specialty Savings Accounts
A specialty savings account is designed to help savers plan for and meet customized financial goals. Some savers may use these accounts to start saving for a mortgage, a new car, or an upcoming vacation. Specialty savings accounts may help college students plan for tuition or room and board expenses. They can also include retirement or healthcare savings accounts for yourself.
Open Free Savings Accounts
Opening a personal savings account helps you keep your cash safe and grow your financial resources for emergencies or later spending. Many savers choose to open multiple accounts or account types to meet their financial needs. Speak with a local bank today to help you decide which free accounts will best help you meet your savings goals.
