Safety - The National Credit Union Administration (NCUA) insures up to a maximum of $250,000 in your credit union savings account. If the credit union fails, the NCUA covers your deposits. No one has ever lost money in an NCUA-insured account.
Accessibility - Funds in your savings account are readily accessible. You can make withdrawals from your savings account by calling or leaving a message at 217-481-6381, by sending us a note at firstname.lastname@example.org, or requesting a withdrawal through PayPal at email@example.com. Do not include any personal information such as a Social Security Number in the above requests.
Emergencies - Emergencies, such as losing your job, can cause stress on anyone's financial situation. Having several months' worth of living expenses in savings can help take the pressure off until you can get back on your feet.
Big Ticket Items - You might not have the resources to make a major purchase on the spur of the moment. By setting aside a fixed amount of money in a savings account each month toward the price of a big-ticket item, you will have the funds available to pay cash and avoid going into debt.
Unexpected Expenses - Life happens. You might have a tire blow out, or you might blow the engine in your car. Your sister might go into premature labor and you need to fly to Denver tonight. Unexpected expenses can put a huge damper on your financial plan; money set aside in a savings account can cover them.
Encourages Financial Stability - Pay yourself first. Regularly putting a portion of each paycheck into savings helps create a sense of financial stability.
Discourages Reckless Spending - It is easier to spend money that is in your pocket than to spend money that you have to get from the bank or the ATM. This "out of sight, out of mind" scenario may help discourage impulse buying.
Sets a Good Example for the Kids - Putting money into a savings account at your local bank provides you with a teachable moment with your kids. Showing your kids how to save gives them an opportunity to learn self-control. Studies suggest that children who have savings accounts have less stress, a greater sense of hope and are more likely to attend college than kids who don't, according to the American Bankers Association.
Encourages Sound Financial Habits - Regularly putting money into a savings account is a first step in creating habits that extend into other areas of your financial life. As you become more financially literate, you may discover the need to create a budget to tell you where you spend your money, and a financial plan to help guide you toward your goals for the future.
Interest - Savings accounts pay interest on your deposits. Granted, the interest on savings accounts is minimal, but it is better than putting cash under your mattress where it earns nothing at all.