A savings account gives you a safety net to fall back on in case of emergency, as well as a good source of liquid money to tap into for unexpected purchases. Apps like Venmo, Cash App, and PayPal, while often quick and convenient to use, are not banks and often lack the insurance that protects financial deposits that traditional financial institutions carry.
Whether you’re starting your savings habits from scratch, or you already save on a regular basis, it’s important to decide where to keep your money. While you may have multiple account types on your radar–such as money market accounts, Certificate of Deposits (CDs), and savings accounts come with several key benefits that make them attractive vehicles for your money.
Here are five reasons why to have a deposit account at a bank for personal and business.
1.) Security and FDIC Insurance
The Federal Deposit Insurance Corporation (FDIC) insures the deposits at FDIC-insured banks up to $250,000 per depositor, per insured bank, for each account ownership category. According to the FDIC, no customer has ever lost a single penny of insured deposits since its creation in 1933.
Some financial apps, including Venmo, invest stored money into bonds or loans, allowing them to earn a profit on the cash that they may not share with users. Those kinds of investments are not subject to the same oversight that banks are, which means the risk to consumer funds is greater.
You could be putting yourself at a disadvantage by saving large amounts of money in Cash App or Venmo. Not only do you not have deposit insurance on that balance, but you’re also not earning the interest you might if you chose to put those funds in a high-yield savings account.
2.) Opportunity for Accumulating Interest
If you have money sitting in a savings or checking account and want to make it work harder, consider high-yield savings accounts or CDs to get a greater return. These certificates of deposit are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.
Depending on which personal savings account you choose, interest rates will vary. To find out the current rates offered by Core Bank call us at 1-877-968-7672.
3.) You Can Link your Savings Account with other Accounts
Depending on your financial goals, when you’re managing a savings account, one of your savings account options may be the ability to link it to other accounts for easy transfers, overdraft protection, and withdrawals. With Core Bank’s online banking and mobile app, it’s easy to manage your accounts. You can even use the Remote Deposit Capture feature 24/7, free of charge, to deposit your checks without setting foot at a bank location.
4.) There are Few Savings Account Requirements or Limitations
If you’re at least 18 years old, you can open a savings account at most institutions. In order to complete your application and open your account, there may be some savings account requirements, including providing identification information and meeting a minimum opening deposit amount.
At Core Bank, our banking philosophy is that every customer should have an option that suits their needs and goals. Our Core Savings, and Core Money Market account options each have unique benefits. Our expert staff members would be happy to pair you with the account that fits you best!
5.) Banking that Supports the Community
Core Bank helps fortify our community through philanthropic outreach and civic service. We’re local and community-focused, and we demonstrate it through action. We support and encourage employees to donate their time and talents by giving them 16 paid hours each year to volunteer their time locally in the community. From coaching kids to helping them achieve their goals, jumping into icy waters raising money for Special Olympics, and serving meals at the Open Door Mission, the Core Bank team gives back, and has fun doing it!
Our customers come first at Core Bank. Whatever your needs may be, there’s a savings account option for you. Each account type comes with various benefits beyond competitive interest rates and no monthly maintenance fee for those who maintain a minimum account balance. You can learn more about account services here.