Finding a Place for Savings
It’s one thing to start saving money. It’s another to figure out where to actually store that money for safekeeping. There are many places you could keep your savings, each offering specific risks and benefits. Some things to think about are how secure it is, whether there are costs associated with keeping it there, and how accessible it is.
For example, keeping savings in a secret place in your home is easily accessible and is free, but may be less secure in the case of theft or fire.
On the other hand, a bank or credit union could be less convenient, but is very secure. The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) guarantee the money people deposit will be there when they want to withdraw it. So, if you have less than $250,000 deposited in a checking or savings account at an insured bank or credit union, you’ll get all your money back if the institution fails.
Weighing the benefits and risks of each place can help you decide what works best for your savings.
What to do
- Evaluate the benefits and risks of each place to keep your savings
- Write down questions you have about options you think could be right for you
Benefits | Risks | ||
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Account at bank or credit union (savings, checking or share draft) |
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Family member or friend |
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Home |
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Prepaid card |
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U.S. savings bonds |
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Download this fillable PDF to help evaluate the benefits and risks of each place to keep your savings.
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Basic Elements - Legal Text
Source: consumerfinance.gov
This material is provided for educational and information purposes only. It is not a replacement for the guidance or advice of an accountant, certified advisor or otherwise qualified professional.