The holidays are officially over: No more decorations, parties, or presents—no more holiday spending, either! Chances are, you gave your checking account quite the workout over the last few weeks, but now it’s time to replenish your available balance and start saving.
Experts recommend you set aside at least 15 percent of your income every pay day, yet 65 percent of Americans save less—and 19 percent have no savings at all. Don’t make this mistake and find yourself struggling when an unexpected expense hits or it’s time to retire. There are a variety of ways to make 2019 your year of saving, but not all options are created equal. Today, we’re going to examine two of the most common saving vehicles: savings accounts and money market accounts.
- Savings Accounts: One of the primary reasons to open a savings account of any kind rather than keeping all of your money in a checking account is to earn more money on your money. Savings accounts also offer greater flexibility than other savings options—such as a money market or certificate account—when it comes to balance maintenance, withdrawal frequency, and deposit frequency and amount. While interest rates vary based on your financial institution, credit unions are not-for-profit, so they pay higher rates. Check out Suffolk Federal’s Regular Share Savings account, which you can open with as little as $5.
- Money Market Accounts: Money markets usually come with higher rates than regular savings accounts, but they do come with some restrictions. In addition to monthly withdrawal limits, they often require you to open with—and maintain—a high balance. Many accounts also limit the number of monthly deposits you can make and enforce a minimum deposit amount. That’s what makes Suffolk Federal’s Money Market account a better option than many others: You can make as many deposits as you need, for as much (or little) as you want.
Now that you know the ins and outs of savings and money market accounts, only you know which option best suits your needs and lifestyle. No matter which one you choose, you’re taking the first step toward financial stability and a prosperous new year!