We all want to be smart with our money, but often it can be hard to know where to start. You’ve likely heard lots of advice from friends, family, coworkers, or influencers online, all telling you different things. Invest in this. Watch the market for these signs. Wait for these kinds of rates. Juggling all of this advice can feel like a full time job in and of itself!
The good news is that you don’t need to be a financial expert in order to take meaningful steps toward your financial goals. While investing in stocks, bonds, crypto, etc., can be enticing for many, there are other pathways toward earning a low-risk return that may add up significantly over time. If you’re working to build sustainable money management practices with an eye toward building your long-term wealth, your local bank may offer products and services that can provide a helpful place to begin.
Here are the top three ways that you can use everyday banking products to help you establish healthy financial habits and realistically grow your money with minimal risk.
Use a Checking Account with Benefits
The majority of Americans use a bank account to manage their day-to-day finances, because a bank can offer a certain level protection against loss that is harder to manage when holding on to cash. Checking accounts make it more affordable to directly deposit funds, pay bills, and transfer funds, and you can use a linked debit card to make purchases and withdrawals more flexibly.
As your money management savvy grows, you may be interested in how to maximize that bank account you use every day, and one way to do so is by choosing a checking account with benefits to help you earn on (and add to) your balance. Many banks offer checking accounts that include perks such as cashback on certain purchases or competitive interest rates on qualifying account activity, which means that you could leverage the deposits and transactions you’re already making to make a percentage of your money back.
Consider how you’re already using your account as you explore your available checking options so that you choose an account that works with your lifestyle.
Set Aside Savings in a High-Yield Account
A well-rounded financial plan also typically includes a savings account, because this type of account can be easy to open, provides financial security and certain insurance protections, keeps your funds relatively accessible, and helps you make progress toward your goals.
While most savings accounts are designed to offer a certain level of interest on your balance, a Money Market account is a type of savings account that is tiered so that the more you have, the more you earn. If your savings has hit a certain threshold (for instance, at SouthEast Bank the minimum deposit and monthly balance for a Personal Money Market account is $2,500), it may be beneficial to consider this account, since Money Markets can typically offer a much more competitive rate of return than a standard savings account. However, depending on your bank this account may have certain transaction or withdrawal limits, so talk to your banker about how a Money Market account may fit into your financial goals, perhaps in combination with other savings or checking accounts.
Earn a Competitive Return with Certificates of Deposit (CD)
While both offer secure ways to store your money while earning a return, CDs differ from savings accounts in the terms of how those funds are held. When you open a CD, you agree to invest a certain amount of money for a specified time period in return for a fixed interest rate. Once this time period is over, you’ll get your money back plus interest. In most cases, if you have an emergency expense, you can withdraw funds from your savings account without a penalty. If you take funds out of your CD before the term is up, however, early withdrawal penalties may lessen your earnings.
While CDs are technically a form of investing, they earn a relatively low rate of return compared to many other types of investments. However, they remain a popular choice for those who have set aside funds they want to invest safely during a relatively short season of time – as little as six months or as long as several years. If you have a healthy emergency fund and savings balance, consider how a CD might help boost a portion of that savings.
Banking with Confidence
When you’re looking to make money management a priority, your local bank has the products and services to match your needs and goals. Don’t feel pressured to get all of these accounts (and more) all at once in order to reach a level of “financial health”; instead, take meaningful progress toward your goals at a pace that makes sense for you. Start with one account, add another, and another, until they’re working together to maximize your money.
Better still? You don’t have to figure it all out alone. Your local banker is knowledgeable and experienced when it comes to working with individuals and families just like yours, and can help you evaluate your account options and set milestones towards more significant financial goals.
Getting started doesn’t have to feel intimidating. At SouthEast Bank, we care about meeting you where you are and helping you toward where you want to go. If you’re interested in learning more about SouthEast Bank’s account options, explore our website or visit us at your nearest branch.
