FEEA joins the Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, Federal Emergency Management Agency, Department of Labor, National Credit Union Administration, and other federal agencies, banks, credit unions, academic institutions and nonprofits, as well as America Saves, to celebrate America Saves Week with a few tips to help everyone build a healthy savings account for things you want or need.
1. Split to Save Your Paycheck
The easiest way to get started is to set up an allotment from your paycheck that goes directly to your savings account. In just a few steps, you can “set it and forget it” to reach your savings goal:
Login to your payroll system and find the menu item to create/set-up a new financial allotment
In the bank information section, enter the routing number for your bank and your savings account number
Choose SAVINGS account
For allotment amount, enter the amount you want to save each pay period (eg. if you want to save $100/month, enter $50 per pay period – over 26 pay periods, you’ll save $1,300 a year!)
Follow your system’s prompts to Save/Continue, etc. (every payroll system is a little different)
The final page should state when your allotment will start
Save every month without doing anything else!
2. Budget Savings
If you don’t want to save directly from payroll, you should still plan to save by adding a monthly savings goal to your budget — and then setting up an automated recurring transfer from your checking to your savings account right away.
3. Consider a Separate Bank
Whether you’re saving automatically with an allotment or setting up an automatic transfer from your checking to meet your monthly goal, many people find it easier to avoid raiding their savings if it’s in a different bank than their general checking account, making it a little more difficult to get to. Check other local (or national) banks and credit unions to find one with good rates on savings that works with your available balance and goals. Nerdwallet and The Motley Fool both have recent round-ups of high interest savings accounts available nationally, but it’s good to check with banks/credit unions local to you as well — most will have savings rates listed on their websites, as well as any minimum balance rules to get the best rates.
If you dip into your savings for a planned (or unplanned) event, consider increasing your monthly savings allotment/goal to build your savings back up faster.
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