It’s important to have a reliable place to store your hard-earned money. But before opening a savings account, you should think about what your goals are. Are you wanting to set money aside for a rainy day? Or do you want to save up for something big, like a vacation, house or new car? Once you have a goal in sight and a clear direction of how you want to prioritize your money, you can set a savings strategy that works for you.
A savings account is the foundation of creating a strong financial plan. You should plan to use this account as a place to deposit money to save and not regularly withdraw for expenses. You can use this account as a place to house an emergency fund and to save up money for other planned purchases. A savings account is the foundation of creating a strong financial plan.
Once you have built up reserves in your savings account, or if you are using your account for short-term savings goals, you should consider looking to grow your savings with money market mutual funds and time deposits. Both of these offer low-risk ways to earn interest on your money, which can help you save more money in a shorter amount of time. Time deposit accounts usually pay a higher rate of interest but your money is locked in for longer and you’re therefore less liquid. On the other hand, money market accounts allow you to more quickly access to your funds, but generally offer lower interest rates.
Download the full Savings Solutions Explained infographic to learn about the differences between a savings account, money market account and time deposit account to find out what works best for you.
UMB personal banking solutions offer convenience and simplicity to meet all of your past, present and future financial needs. From home loans to auto financing and everything in between, see how UMB personal banking can work with you to find the right products for your life and lifestyle.
When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.