Saving money is important for a number of reasons. Everyone needs a safety net in case they are faced with an unexpected expense or lose their primary source of income. Having money in a savings account dedicated to this purpose can give a person the peace of mind to move through life without fear of financial hardship. Since keeping large sums of money in the house just isn’t practical and doesn’t earn the saver any interest, it’s important to find a financial institution with competitive rates to hold the savings.
Savings Accounts vary based on how much money is likely to be in the account on any particular day and the purpose of the funds. People who want to build an emergency fund or save for retirement might consider accounts that offer higher interest rates in exchange for less liquidity. However, those who have a particular purpose for their savings, such as holiday gifts or a vacation might look at accounts that offer them more flexibility, even if that means they don’t get a high-interest rate. Savings Accounts are also available for children who want a safe place to keep their allowance or birthday money. These accounts typically have very few, if any, fees associated with them to encourage children to learn to be financially responsible as they grow.
Opening a savings account is easy. Adults merely need their identification and a minimum deposit to set up the account. Children typically need to be accompanied by an adult when they set up their account but may be able to make deposits without a parent present. Most savings products limit the number of withdrawals a customer can make per month, so it’s important to only use a savings account for saving money. Funds that are needed to pay bills or cover other expenses should be deposited in a checking account so they will have easy access to it. Anyone interested in learning more about savings and checking accounts should visit Phfcu.com. Those who prefer to talk to a representative can visit a branch or call for more details and help with opening one or more accounts.
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