4 Essential Uses for Savings Accounts

Smarter and Harder

Savings accounts aren't what they used to be.  With vanishingly small interest rates against soaring inflation, many people understandably wonder if these accounts are worthwhile at all.

It's true that bank accounts aren't as useful for building wealth as other means of saving and investing. But that doesn't mean they can't still be of some use.

In particular, checking and savings accounts offer stability and accessibility that is hard to match anywhere else.

This leaves bank accounts in a unique place. They're probably not the best place to keep all your money, but they are the perfect solution for a few specific things.

1. Emergency Funds

Emergency money doesn't need to make you rich. It just needs to stay safe and ready to use anytime. A perfect job for an ordinary savings account.

2. Monthly Expenses

Keeping money accessible for  daily spending and regular bills is the bread and butter of a plain old checking or savings account.

Saving for upcoming goals like a big purchase or vacation using an investment account may seem like a clever idea, but is almost never worth the risk.

3. Short-Term Goals

4. Financial Grand Central

A reliable bank account is a perfect hub for moving money between everywhere else, like your income, investments, bills, and other expenses 

Bank accounts are not very flashy or exciting, but that's part of their appeal. When you're putting them to the proper uses, boring is exactly what you want.

If you want your money to grow over time, consider an investment account like an IRA or 401(k). But when you need your money safe and always ready, a savings account is the way to go.

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