Important things to know about Savings Accounts

Feb 1, 2023Financial Literacy

A savings account may sound relatively simple.  But there is more to it than meets the eye.  Savings accounts can be an excellent tool for investing in your future or simply for saving up for a specific purpose or purchase.  Like other areas of your finances, understanding the various types of accounts available to you and how these accounts earn interest is a great way to truly make your savings account work for you.  

As costs – whether this be for a new car home, or even a dozen eggs – continue to go up, more and more people are looking closely at their savings and overall savings goals.  Savings can feel daunting, especially if your goal is a large purchase, but saving, even in small amounts, is important.  

Using the free *Native American Financial Services Association (NAFSA) Financial Literacy Program, you can explore online playlists with many modules that relate to overall financial competency, whether this is understanding credit cards or preventing overdraft fees, our curated playlists will provide you with important information.

Savings Accounts:

There are many different types of saving accounts.  Some of the more popular and accessible options are high-yield bank accounts, certificates of deposit (CDs), money market accounts, money market funds, and bonds.  Each has its own pros and cons, and like most decisions surrounding your finances, proper research and considerations must be made.  One main thing to consider is whether you plan to, or unexpectedly might need to, access your funds in a specific timeline.  

Our Savings Accounts module, located in the Investing in your Future playlist, covers things like how you might calculate what you can save each month, why interest is important as it relates to savings accounts, and the five main steps associated with opening a savings account.  This module even discusses how you might set up a savings account for children!  There are many aspects to consider when thinking about your future, and a savings account can be a great strategy to implement.

The NAFSA Financial Literacy Program provides a variety of modules and tools with easy-to-understand information to help people better comprehend their finances and make more informed decisions.

Explore the program today:

*The NAFSA Financial Literacy Program content contained on the NAFSA web page(s) referenced above, and on any subsequent pages created by our service providers/partners, provides general consumer information. It is not legal advice or regulatory guidance. There may be other resources that also serve your needs and you are always encouraged to, and should, consult with your own professional advisors prior to making any financial decisions.

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