Savings: Your Financial Cushion

Life is hectic and full of surprises, some of them being unpleasant. Whether you need a sudden car repair or face an unexpected medical bill, unforeseen expenses can tangle your finances. That’s where a savings account comes in: it’s a financial buffer against life's unexpected moments.

Where checking accounts are designed for everyday banking, savings accounts are meant to preserve funds for emergencies or short-term goals. They should serve as a financial safety net, ready to catch you during unexpected chaos, and prevent you from resorting to credit card debt or loans.

In order to build a successful savings account and create the peace of mind an emergency fund allows, consider the following strategies:

• Create a savings plan. Assess your current finances and identify areas you can cut back. Set realistic savings goals depending on your income, expenses, and lifestyle.

• Take advantage of bonuses. Unexpected income such as a bonus, tax refund, or birthday gift can give your savings a boost. Stay committed to reserving a portion of these funds for your savings account.

• Maintain your funds. The reward of financial peace of mind is achievable through maintaining a solid savings account. Contributing regularly, avoiding the account for non-emergency expenses, and celebrating milestones are the keys to a healthy, long-lasting fund.

At Austin Bank, we offer four different types of savings accounts, as well as Certificates of Deposit. CDs offer high interest rates with a longer commitment.

Our four savings account types include:

• Classic Savings account
  • Features a minimum opening balance of $100, monthly fee of $3 if $200 minimum monthly balance isn’t met, up to 6 free withdrawals and/or transfers each monthly cycle, and interest accruing daily.

• Young Savers account
  • This savings account is perfect for minors under the age of 18. It features a minimum opening balance of $50 or $10 with a family relationship, no monthly fees, no minimum balance requirements, up to 6 free withdrawals and/or transfers each monthly cycle, and interest accruing daily.

• Money Market account
  • Features market rates, minimum opening balance of $2,500, monthly fee of $10 if $2,500 minimum monthly balance isn’t met, up to 6 checks and/or transfers each monthly cycle, and interest accruing daily on balances over $2,500.

• Health Savings Account
  • Designed to hold funds set aside exclusively for paying qualified medical expenses. You must be enrolled in a High Deductible Health Plan to be eligible. Features a minimum opening balance of $100, monthly fee of $5 if $200 minimum monthly balance isn’t met, interest accruing daily on actual collected balance of $1,500 and above, and one-time $15 account set up fee.

Need help deciding on the right account? Austin Bank has a team of financial advisors who are focused on helping you pursue your financial goals. To learn more about our savings accounts, click here.