How Can I Get the Best Return on My Money?
Short-term and long-term savings plans should be a part of any sound financial strategy. It’s important to prepare for expenses that are anticipated—like a wedding, vacation, college, or retirement. But it’s equally important to be prepared for expenses that are not anticipated—like a car repair, a big home appliance purchase, or emergency medical bills.
So what are the best options for saving your money and getting the highest return? Here are some important things to consider and a few ways to start banking smarter for both your immediate and future needs.
Remember that everyone’s comfort level is different.
Everyone has a different comfort level when it comes to managing their money. Some people like to keep a large balance in their checking account, even if no minimum balance is required and no interest is earned. Some would rather put most or even all their money away for safe keeping—saving for a rainy day, for their children or grandchildren’s future, or for a big life event that’s years down the road.
But what’s the best approach to money management and getting a healthy return on your investment? It’s finding the right balance between short-term and long-term saving strategies.
Get instant access to funds with a demand deposit account.
If you’re looking for immediate access to your money, you’ll want to go with a demand deposit account like a Checking Account. With this type of account, deposited funds can be withdrawn at any time, without advanced notice. Because of its convenient “on demand” availability, these accounts typically pay little or no interest.
Kish offers two different types of Checking Accounts—Expect More Checking and Easy Checking. To see which option is the best fit for you, give us a call or stop by any Kish location. You can also schedule an appointment online to meet with one of our banking specialists.
Interest yields differ for short-term vs. long-term savings.
When you accumulate funds that you don’t plan to use immediately, there are short-term and long-term savings options to consider. Market conditions will come into play, and the amount of interest you can earn will vary. Long-term products will yield more interest, and short-term products will yield less interest.
Is a Savings or Money Market Account what you need?
Smart solutions for shorter-term savings include a regular Savings Account or a Money Market Account (MMA). Circumstances will vary, but typically if you want to save for just a few months, then these two options are worth looking into. They are both interest-bearing and will grow your money over time.
Learn more about Savings Accounts vs. MMAs available at Kish or schedule an appointment to meet with one of our banking specialists.
Could a CD or IRA be your best savings tool?
There are a number of long-term investment tools out there, but two of the most common and simple solutions include Certificates of Deposit (CDs) and Individual Retirement Accounts (IRAs). If you have a set amount of savings that you don’t need access to over the next several months or years, consider one or both of these options.
CDs will usually offer a higher interest rate than a regular Savings Account but will yield lower returns than other high-risk investments. Kish offers CD terms from 3 months up to 10 years, each with a fixed rate for the life of the CD.
An IRA is a long-term investment account that accumulates tax-advantaged deposits and earnings for your retirement. Like CDs, there are different types of IRAs—with Traditional and Roth being the most popular. Kish offers both types, as well as others.
Talk to Kish and start saving smarter today.
With Kish, you never have to go it alone when figuring out your savings strategy—we’re here to support you every step of the way. Connect with an expert Kish Banker today who will help you devise a complete savings plan and help ensure you get the best return on your money.