Saving is, in essence, setting aside money or a way to exploit your current income for future use and needs.
We can save for many reasons, such as for your education, the purchase of a new car, a new electronic device, a down payment on a property, or to support ourselves when the inevitable retirement arrives.
While there are more than a few reasons to save money, there are just as many different ways you can save, the best method being determined by the plans you have for yourself in the future.
1. Savings accounts. When you are saving for a short period or in case of possible emergencies, consider opening a regular savings account. This will allow you to access your money instantly in the fastest and easiest way.
Just as good for short-term and long-term savings, savings accounts are easy to deposit and withdraw to your newly opened account and will allow you to earn interest on a daily basis. This can vary based on your average daily balance and deposits, so it is always highly recommended to shop around to find the best deal.
2. Current accounts with interest. With these, you can benefit from the conveniences of a checking account, while your daily cash deposits add interest. These types of accounts typically grant exclusive privileges such as unlimited withdrawal and check writing, access to ATMs in vast geographic locations, and bill payments / transfers that can be made over the Internet.
This method generally requires a daily maintenance balance and can vary from bank to bank. As recommended in the previous method, it is best to shop around to find the best deal.
3. Insured money market accounts. For long-term goals and monetary growth, this technique is impeccable, as it generally offers a much higher interest rate compared to a regular or standard savings account.
The interest rate generally depends on the amount of money in your bank account; higher balance means higher interest.
4. “CD” or Certificates of Deposit.This is a savings plan that requires you to “loan” your cash to a financial agency for an assured period of time, typically from thirty days to five years or even longer in some cases. The longer the time span here, again, means prime interest rates and returns.
Remember that insurance companies can generally offer better interest rates compared to banks, so before investing, shop around first! There are a host of reputable comparison and review websites on the internet that can be found with a little research and time.
In some cases, when your financial goal or need for supplemental income is more urgent, it may be smarter to look for viable ways to increase your income streams. Always do your research and due diligence and seek professional advice before embarking on what to do.