Finances are an important, involved and always-changing concern for nearly every adult in the U.S. and throughout the world. Making budgets, managing investments, controlling spending and other factors are all vitally important for long-term financial health. Considering the many complicated elements that can quickly arise in financial matters, instances where easy money is potentially up for grabs are that much more important. Let's look at how you can get the most out of your finances with some relatively minor, entirely manageable changes to the way you approach your personal banking needs.
Understanding how to maximize your returns
Understanding a few very basic principles and keeping them in mind as you make financial decisions can definitely pay off in the long run. You already know that it's better to keep large amounts of money in a secure account managed by a dependable financial institution, as opposed to in a coffee can or under a mattress. While you lose direct, immediate access to physical cash - which is less and less of a concern in an economy increasingly driven by debit and credit card transactions - you gain the far more substantial benefits of keeping your money secure and, potentially, putting it to work for you.
Earning interest off of your savings, investing in certificates of deposit when appropriate and through other options is one of the easiest ways to put your money to work for you. That's true because there's no need for active management, as you simply earn interest based on the amount in your account or CD. You don't need to pay close attention to stock markets or assess the relative benefits of other investments. There's also no substantial risk to worry about, as you know your deposits are secured through Federal Deposit Insurance Corporation.
How can you make the most of the options for earning interest available from your financial institution? TAB Bank provides these effective options to all of our personal banking customers.
High Yield Savings Account
You shouldn't keep the entirety of your savings in a savings account, as a significant portion should go toward retirement savings and other investments. However, financial best practices mean keeping a significant amount of money immediately available in the form of an emergency fund, generally three to six months' worth of all basic expenses. Additionally, you'll want to keep money for major purchases, like vacations, large electronics, cars and more, easily accessible. When you use TAB's High Yield Savings Account, you benefit from a notably high interest rate while also enjoying a $1 minimum daily balance and no minimum to open the account. This approach is a simple and effective way to avoid leaving any money on the table in terms of interest earnings.
Certificates of Deposit
Certificates of deposit offer strong interest rates and a variety of term lengths to create a simple, easily understood investment with minimal risk. Our range of CD offerings stretches from a six-month option to one extending for 60 months, with interest rates increasing along with the period of the CD. Thanks to guaranteed growth - you will earn interest based on your total deposit and the set rate of the specific CD, regardless of any external factors - you can rest assured that these funds will return to you once the CD matures. Whether you want to make one of the safest investments possible or save for a specific purchase or goal, a CD gives you a significant return.
TAB Bank is here to help you make the best personal banking choices possible. To learn more, get in touch with us today!
About the Author
Follow on Linkedin More Content by Michael Palmer