By: Cayla Keyes
VP, South Sixth Street Branch Manager
While some people think it’s safe to hide money in a mattress or in the back of a closet, the reality is both places are susceptible to fire and burglary. Putting your money in a bank savings account assures you your money will be there when you need it. If you have a substantial amount of money to save, you might consider a certificate of deposit or other interest-bearing accounts.
The important thing is that you save! Everyone should have a savings account to cover:
1. Emergencies – What happens when the home heating system goes out in January? Think about the day you pull into the driveway only to find the garage door opener is no longer working. And while you have health insurance, consider the day you fall off the ladder and find you need to need to stay off the job for a while.
2. Unemployment – Nobody likes to think about not being able to pay the bills because of unemployment. But you need to think about it. The rule of thumb is to save enough money to get you through three months of unemployment.
3. Car repairs – Your car decides not to start. You call the repair shop for a tow. Do you have the money you need to get back in the driver’s seat?
4. College tuition – If you’re a parent you have to be thinking beyond the kiddie stage. While babies are cute crawling around in designer tennis shoes and matching romper, perhaps the money would be better saved in the “college fund.”
5. Weddings – First comes college, then comes marriage. Will you be ready to help out financially on the big day?
6. New car – Paying for a car with an installment loan is the expensive way to get a new car. Once you’ve finished paying off a current car payment, consider putting that loan payment amount into a savings account toward the purchase of the next vehicle.
7. New home – You usually need a down payment worth thousands of dollars. It’s never too early to start saving.
8. You want a vacation, a motorcycle or a pool in the backyard. They’re all possible through the power of saving.
Listen to what INB Banker Jamie Singer has to say about saving.