If you’re just starting to read the financial circuit of news and information online, you have undoubtedly realized that there really is a lot of thins to check out and read about. One of the biggest things that get discussed in these circles is how to grow your money — definitely a hot button topic for a lot of people. Everyone has their own ideas of where to put their money, but if you’re not sure where to start and you’re dreadfully worried about where your money is going, here’s a place to stick it — in a traditional savings account.
Now, we know we’re going to immediately get some criticism for this, because we’re not suggesting some online brokerage that is supposed to give you the highest interest rate possible. Notice we did set some parameters — if you’re trying to preserve principal, then traditional savings account at the bank definitely allow you to do this.
Yes, the interest rate isn’t going to be the same as if you were to get into ETFs, or jump into the stock market headfirst. However, you will be preserving the money that you came into the game with, and that’s very important to some people. After all, do you really want to play with your child’s educational expense account, or the money that you’ve been saving so that you can make repairs to your home?
Traditional savings accounts are also good for short-term goals that really wouldn’t make sense to throw into a mutual fund — such as saving for Christmas or another time of the year where you know that you’re going to have to shell out a lot of money in a short period of time.
Like regular bank accounts, you should definitely look up interest rates online if you really have significant money that will be deposited. Interest rates are generally better if you have a lot of money that will be going into the account.
Another great reason to get a traditional savings account at a bank is if you’re trying to teach your children about the power of saving. It can be exciting to a child to be able to go into the bank and see their account statement. Many banks plan for this by having an account type specifically for minors — why not check it out for yourself today? When you really see the benefits, you will truly be glad that you looked into all of your options!