Setting aside money on a regular basis is a habit worth getting into. It allows you to achieve your financial goals and provides a safety net for financially challenging times. However, sometimes the hardest part about saving is getting started and knowing where to put your dollars. Here are some options for developing a strategy for your short-and-long term savings goals.
Make saving easy with these practices:
- If you have direct deposit, have a portion of your paycheck directly deposited into your savings account. Or set up a regular automatic transfer from your checking to your savings account.
- When you receive a raise or bonus, put the extra cash in savings instead of spending it.
- Deposit a portion of income tax refunds, and cash gifts from birthdays, holidays, or other special occasions into a savings account.
- By saving even a little as you are repaying debt, you’ll establish a savings routine. Bethpage offers great rates on credit card balance transfers and personal loans to help with debt refinancing methods.
- Once you’ve paid off your car or other debt, start putting the same amount in savings.
Where should you put your savings?
Savings Account: With a savings account, you deposit money with a financial institution and receive interest or dividends in return. You can withdraw your money at any time (making it a good choice for emergency savings). At Bethpage, your money is insured by the National Credit Union Administration (NCUA). Click here to learn more about Bethpage’s Savings Account.
Certificate Account: Certificates are designed to increase your savings in a secure and predictable way. Certificate accounts differ from savings accounts as the money must be deposited for the term of the certificate otherwise there is an early withdrawal penalty. Certificates are insured and generally have a higher interest rate than savings accounts. Click here to learn more about Bethpage’s Certificate Account.
Money Market Account: A money market account is similar to a savings account, but the interest rate is variable and usually higher as well. Money market accounts are federally insured by the NCUA and have different tiers to earn a certain Annual Percentage Yield (APY). Click here to learn more about Bethpage’s Money Market Account.
Special Purpose Account: A special purpose account gives you a way to dedicate funds to specific savings goals for large expenses such as college, vacations, home upgrades, and new technology. By setting up this account for savings, you can choose to have money automatically withdrawn from a paycheck each month or only allow restricted access to it. Click here to learn more about Bethpage’s Special Purpose Account.