The process to amass a nice-sized savings account takes time dedication, patience and determination. When a member reaches a respectable savings amount, then comes the process of maintaining and growing it to an amount that didn’t seem possible at the start.
An April 2014 Gallup poll shows that 62% of Americans are enjoying saving more money than spending it. The current personal savings rate in the U.S. is 5.4% as of August 2014, according to the U.S. Bureau of Economic Analysis. Financial experts recommend saving 10 percent of your annual income for financial security.
While not everyone is able to maintain that level of savings, there are steps you can take to learn how to save money and to build a solid savings account.
Start off with a budget. Portioning off money for bills, everyday expenses and miscellaneous items should help determine what is leftover to put away into savings. It doesn’t matter with how much you start with; what matters is that you contribute regularly to a savings plan. Check out our budget calculator to see how much you can save right now. It helps to also save any extra money that comes your way such as raises, income tax returns and cash birthday presents. If you didn’t expect to receive the funds you can use that as a reason to save it. Loose change also counts.
If you’re making monthly payments on a car and are close to paying it off, consider continuing with that same payment to pay yourself. For example, once your $300 auto loan payment is paid off keep making $300 payments into your savings. Since it is money already accounted for make it work for you.
Now that you’ve got an idea how to regularly save money, it’s time to plan what you want to do with it. You don’t need a goal to justify savings. It’s just a good practice that has been done for generations of people. Having a nest egg also helps you in case you need the funds for an emergency.
People tend to save when it’s for something they really want. That incentive gives them the determination and drive to save so they can get it as soon as possible. At Travis Credit Union, there are several types of savings accounts, depending on your savings goals:
Our Share Savings account establishes your membership at Travis Credit Union. A minimum balance of $5 is required. You may use funds in your Share Savings account as overdraft protection for your TCU checking account or for shared-secured loans.
This account helps you plan for short-term savings goals. It is a great option to help you save for the down payment on a car, a vacation, holiday shopping, school expenses or any other goal you have.
Money Market Savings
Our popular Money Market accounts earn interest based on your balance. Your funds are liquid so you can withdraw them at any time without penalties. You can choose from flexible and self-managed money market accounts.
Money Market Savings
Our certificate accounts help you earn more on your money. Choose from a variety of terms and rates to fit your needs. Plus, you can open your certificate within Online Banking if you’re already a TCU member.
All of Travis Credit Union’s deposit accounts are federally insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), which is backed by the U.S. government. The NCUSIF is administered by the National Credit Union Administration.
Sources: BALANCE Financial Fitness Program; U.S. Bureau of Economic Analysis; Gallup