While I am currently working on re-building my emergency savings (life happened, that is why we have that fund). I was itching to start my Milestone Two: Short Term Savings Goal.
I wanted a safe place that was tucked away from my regular banking accounts and something that I just could not get a hold of when I was inclined to do some retail therapy. I took a look at three specific types of savings arenas and made my choice.
Traditional banking is what I consider a brick and mortar style of banking. There are so many to chose from – basically every major city has like eighty to pick from. A few of the huge benefits of having this type of banking is having immediate access to cash for your envelopes, you can develop a personal relationship for your financial needs and probably one of the best places to start your financial journey.
That being said, traditional banks suck as giving you a fair interest on your savings. Case in point, mine only offers 0.01% – so basically zero. While I do maintain an account, it is mostly used for a holding place for upcoming payments and another plus, it helps me maintain a no-fee checking account.
Credit Unions offer just a bit more for their customers by being not-for-profit banking establishments. This allows them to offer higher interest rates for a savings account along with lower rates on loans. Members hold a share (generally your savings) and are paid dividends for being a member.
Disadvantages that can lead you to not using this type of establishment are fee’s for a non-affiliated ATMs, customer service limited hours and it may not be as tech savvy as a traditional bank. Also, you must have a common bond with your other members such as a job type (teachers) or location.
Albert is a financial app that I picked for my second milestone. I based this decision on one outstanding feature – it tells me how much I spend! The app takes a look at your spending and gives out advice on how to deal with spending habits, checks to make your you are properly insured and gives you a whopping 1% annually on your savings (according to their site).
There are caveats to be aware of. They do have a fee based service, ranging from $4 to $6 a month, no debit card and you must link at least one account to activate service.
My Short Term savings goal is a memorial tattoo honoring my Dad (which I have been meaning to get for the last 17 years!). Do you have something small your are saving up for? Tell me in the comments below. Also, if you are interested in trying out Albert, please email me at email@example.com for a link.
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