Saving money can be difficult – especially if you’re in school or just starting your career. Keeping a small nest egg in case of an emergency car repair, unexpected bills, or planning for a large, future purchase is a wise financial strategy. But getting started with a savings account is often the biggest hurdle – and the most common question we get from our clients looking to be smarter with their money.
Personal Investor Savings Account
A personal investor savings account from Bank of Bozeman offers competitive interest on your balance and quick access to funds when you need them. These accounts are not for everyday spending, (see our personal checking account options for that) and are actually regulated to limit online or card-based withdrawals or transfers to six per month, though you can avoid these restrictions by making in-person requests at the bank itself. You’ll need to keep a minimum balance/month of $100 to avoid monthly fees, but it’s a great way to keep your money safe and growing.
Money market accounts garner higher interest rates than personal investor savings accounts, but carry a further restriction: you’ll need to maintain a minimum balance of $1,000/month to avoid monthly fees. While more cash up front is required, your money will grow faster and you’ll have the ability to use these funds with an ATM or debit card, though the six transactions per month limit apply here.
Certificate of Deposit (CD) Account
Certificate of deposit(CD) accounts tend to earn the highest interest rates of the three majors savings account types, but with a condition: you can’t withdraw funds from the CD for an agreed-upon period of time, or “term.” Early withdrawals will carry penalties, but terms can range anywhere between six months to five years or more.The longer the term, the better your interest rates will be, and most financial institutions will offer better interest rates depending on the size of the account. With a minimum opening balance of $5,000, you’ll need to shore up a bit of cash before considering a CD. Ask one of our personal investor savings professionals for more information if you’re interested in opening a CD account.
Ultimately, as with any financial decision, it’s up to you, but Bank of Bozeman is here to help. With the right insight and guidance to shape your financial picture into the short or long-term future, we can recommend a personal investor savings account and develop a strategy you can follow for years to come. Contact us today to schedule a meeting with a local personal investor savings expert or stop by our Bozeman location today to learn more.