Build Your Savings Account

Saving money is a habit you need to develop to have good financial health. The money you save is what you will use to make a down-payment on a home, build a secure retirement, and to pay for unexpected emergencies.

Deposit money automatically into savings, directly from your paycheck, to make saving a habit. You are less likely to spend the money that never hits your bill-paying account. Start saving when you're young to maximize your long-term savings.

Top Savings & Money Market Accounts (MMA)

Do you have a savings account? Is it earning as much interest as it could? Review savings accounts from different providers, to find the one that fits your needs and earns you the most interest.

 

The Building Blocks of Good Financial Health are Linked

Building savings is necessary, but your savings don't exist in a vacuum. How much you save is connected to the amount you earn; how you spend money and track that spending; what debts you have and how you pay them; and the plans you have to cover unforeseen events. Check out your overall financial health with Bills.com Financial Health Survey.

Is Your Emergency Fund Big Enough?

A medical bill comes that isn't covered by insurance. Your brakes go out on your car and the bill is $700. Your furnace goes out in the middle of the winter. How would you pay for these emergency expenses? Do you have enough savings to cover an unexpected event? Measure your ability to cover a surprise bill using the Bills.com Emergency Fund Calculator.

Types of Savings Accounts
  1. Emergency Fund Savings

    An Emergency Fund is the first savings you should build. You wear a seat belt when you drive, not because you expect an accident, but to be prepared if one happens and limit the damage. An Emergency Fund protects, similarly, providing a cushion from the financial shock that comes with a loss of income or an expense appears out of the blue.

  2. Savings Deposit and Money Market Account

    A basic savings deposit account and money market account keeps your money safe. A savings account offers easy access to the money while keeping the money separate reduces the chances you will use it.

    There are different types of savings accounts with different features, fees, and interest rates. The money you save for a big purchase like a down-payment or a big vacation should work for you, earning interest, while giving you easy access when you are ready to use the mone

  3. Retirement Savings

    How much money you save for retirement determines your lifestyle once you stop working. The #1 rule for building retirement savings is, "Start Saving Early." The #2 rule is, "Better Late than Never." In other words, whatever your age, put money into your retirement savings.

    If you have a job with a 401(k) plan, if your employer offers matching funds, take advantage! Contribute enough to get the max from your employer.

  4. Investment Savings

    Investing is an integral part of good financial health. Don't be intimidated. To invest wisely, you don't need to be an expert or follow the financial markets closely. You do need to save money, though, to have any to invest.

    At its most simple, the earlier you can put some savings into investments, the longer the time they have to grow. If you start early in your working life, you can take a low-risk (not no risk) approach and build a substantial investment portfolio.

  5. College Savings

    If you have children and want to provide, at least in part, for their college education, you may want to devote some savings to accounts that offer tax advantages for dedicated future use for college tuition and fees (and, in some cases, K-12 education).

Are You Saving Enough?

Putting any amount into savings out of each paycheck is a great start to building up the different types of savings you need. However, the benefit you'll get out of making savings a habit is related to how much money you put into savings. You want your savings to grow enough to pay for a significant purchase or reach the level where you don't worry about an emergency.

Bills.com provides you with an easy-to-use Savings Ratio Calculator. You can take a snapshot of where you are today and use the calculator to see how minor adjustments will affect you.

Top Savings Articles

Daniel Cohen

A savings deposit or money market account is key to your long-term financial health. Understand the different options availab... Read more >>

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Daniel Cohen

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