Facebook Messages: Savings Products

1. America Saves Website: http://bit.ly/ASaves

Messages

1. Get to know your bank or credit union! Take time to research their interest rates for loans and for savings products and the services that they provide, such as overdraft protection, online bill-payment, or mobile alerts, which notify you via a text message if your checking account falls below a certain amount. Also, consider going online to get 24-hour access to your accounts. For more savings tips, visit http://bit.ly/ASaves.
2. Where do people put their savings dollars?  Savings accounts and certificates of deposit (CDs) are popular choices. Accounts can be opened at financial institutions such as commercial banks, savings and loans, and credit unions. Rates of return vary among financial institutions as do the maturity periods offered (e.g., 6-, 12-, and 24-month CDs). Generally, the longer the maturity on a savings product, the higher the interest paid. More savings info: http://bit.ly/ASaves.
3. Money market funds are a popular option for savers. They are a type of mutual fund that invests in short-term government securities and commercial loans and they pay market interest rates. Initial minimum deposits generally range from $1,000 to $10,000 so you may need to save elsewhere first to accumulate the required amount. Money market funds are very liquid because they generally come with a check-writing option. Become an American Saver at http://bit.ly/ASaves.
4. Build a bank certificate of deposit (CD) ladder to hedge future interest rate uncertainty. A "ladder" is a collection of CDs with different maturities (e.g., 6, 12, 18, and 24 months). As each CD matures, the proceeds are reinvested at the longest time interval to maintain the ladder. Laddering CDs also allows you to have access to your money at regular intervals so you don't have to pay a CD interest penalty to make a withdrawal. For more information: http://bit.ly/ASaves.
5. For as little as $25, you can buy a EE U.S. Savings Bond that can earn interest for up to 30 years and eventually double in value. Earnings on savings bonds used for qualified educational expenses may be tax-free. EE bonds can be cashed in within a year of purchase but, if you cash them before five years, you lose the last three months' interest. Start small. Think big. Savings bonds are a low-risk, federal government-backed product. More info: http://bit.ly/ASaves.
6. Shop around for the highest yields on checking, savings, and money market accounts and certificates of deposit (CDs) to earn more money on your savings. Compare the interest paid by "brick and mortar" banks, online banks, and credit unions. start small. Use this worksheet to record the features of accounts at different financial institutions: http://www.consumercredit.com/media/12323/bank-account-comparison-worksheet.pdf. More info: http://bit.ly/ASaves.
7. Is your paycheck direct deposited into a bank or credit union checking account? Great! Now take the next step and set up an automatic transfer from your checking account to a savings account. Pick a dollar amount and a date that work for you and lock it in automatically. For example, transfer $200 from checking to savings on the 30th of every month. More savings info: http://bit.ly/ASaves.
8. Are you self-employed as a freelancer or the owner of a small business? You may not have access to employer savings plans, like a 401(k), but there are still plenty of ways to save. First, you can open a savings account with a bank or community chartered credit union. Second, you can fund a Roth and/or traditional IRA. Third, you can save additional money for retirement in a simplified employee pension (SEP) plan. More savings info: http://bit.ly/ASaves.
9. You've decided to save some money. Great! Now it's time to find a place to put it. Here are some options for places to save: a change jar for coins until you deposit them, a bank or credit union savings account, interest-bearing checking account, or money market deposit account, an investment company money market mutual fund, and certificates of deposit (CDs). More savings info: http://bit.ly/ASaves.
10. It pays to shop around for the best return on your savings. Even when interest rates, in general, are low, there may be places where you could earn a slightly higher return on your money. Available higher-interest savings options include: credit union share accounts, accounts at online-only (direct) banks, certificates of deposit (CDs), and Series I and EE savings bonds. More savings info: http://bit.ly/ASaves.