As you know, diversifying assets is always a wise financial decision. It’s also important to make your savings an important part of your overall financial strategy. Whether you're putting a percentage of your income toward retirement or saving for a rainy day, it’s vital to continue building your savings with each paycheck. Whether it’s saving for college, retirement, a house, or just an unexpected car repair, saving is critical for your financial future.
Starting with your first paycheck, a set percentage of your income should be direct deposited into your savings account. That way, if it isn’t part of your checking account that you normally make purchases from, you won’t miss it. In addition to traditional savings accounts, it’s also a good idea to consider a CD (Certificate of Deposit) as part of your savings strategy. CD rates stay consistent so you can have the peace-of-mind that comes from locking into a stable, longer-term rate. Once you’ve locked into a CD rate, your interest rate won’t fluctuate throughout the entirety of your agreed upon term. This type of ‘locked in’ savings can work to our advantage by forcing us to save, since the CD is set for a duration of time.
Certificates of Deposit are an appealing part of your overall financial strategy because they are:
Safe & Secure: Like other bank accounts, they are insured by the FDIC¹.
Reliable: They are the least risky of all higher-yield savings accounts, as there is no risk in the rate changing unexpectedly.
Locked-in Rate: Since the rate is locked in for the duration of your CD, it’s easy to estimate how much closer you will be to your financial goals by the end of your term.
When considering your long-term savings outlook, consider a CD savings account. With a secure CD, saving for things like a down-payment on a house, a dream vacation, a rainy day, or your daughter’s wedding is easier than ever.
Speak to a trusted advisor at First Bank on the advantages of a CD over a traditional savings account today.