Peace of mind starts with a savings plan you can count on.
Where should you stash that hard-earned cash? You have several options for where to save money, but the best fit comes down to your financial goals. Below you will find some common types of savings accounts. Explore which one is right for you.
- Kids Savings Account: Teach your kids the value of saving at an early age with accounts that encourage and reward savings. Typically, account balance requirements are small and accounts have no monthly fees.
- Basic Savings Account (Statement Savings or Passbook): Savings accounts can help you grow your money while keeping funds easily accessible. Consider an account like this when saving for the near future. In fact, many people use these accounts to grow an emergency fund. These accounts typically have few or no minimum balance requirements but annual percentage yields (APYs) may be lower when compared to other types of savings accounts.
- Certificates of Deposit (CDs): CD rates today aren't much to talk about, but CDs are still worth a look. For example, your money is FDIC-insured (up to $250,000 per depositor). Consider an account like this when you don't need to access your funds immediately. In exchange for securing your money with the bank, you'll typically get a higher interest rate.
- Basic Money Fund and Premium Money Fund: A money fund account is another type of savings account. Sometimes the account is tiered, meaning the higher your balance the bigger the reward. Money fund accounts tend to offer similar APYs as money market accounts, but tend to be more flexible when it comes to withdrawing your cash. This is a great account for those looking for higher interest rates and easier access to their money.
- Retirement Account: It's unlikely that Social Security alone will provide for a comfortable retirement. The sooner you start setting money aside for your senior years, the more opportunity your money will have to grow. Get help bringing your vision of the future into clearer focus with personal financial planning.
When evaluating savings products, keep a few things in mind.
- Fees: Does the account have a monthly maintenance fee? If yes, don't be nervous about asking if you can get it waived. Keep asking questions until you're sure you understand and are comfortable with potentially having to pay fees.
- APY: The annual rercentage yield determines how much interest you'll earn. Be sure to ask if the APY is variable or fixed. Variable rates can fluctuate over time. For more information on understanding APYs, please read our guide.
- Convenience: What online and mobile banking tools come with the account? Are the tools user-friendly? Will you get the choice of in-person support and online support when you need it?
- Banking relationship: Do you like to maintain all of your accounts in one place? Does the bank offer incentives for having more than one product with them? Is the staff friendly, knowledgeable and willing to help? Do they support local businesses and the community? Consider both the product offerings and the reputation of the bank, too.
Let’s make a savings plan for what matters most to you.
If you're ready to start saving, Middlesex Savings Bank is here to help. Our team is eager to understand your needs and guide you in the right direction. To get started, call our Information Center at 1-877-463-6287 or stop by one of our Massachusetts branches to speak with an experienced team member.