Make a Savings Account Your Emergency Fund

Savings Account as Part of a Debt Management Plan

June 2015

A savings account can be more than just a place to park your money until you need it. It actually can be the foundation of your overall debt management plan. And if you've decided to get out of debt altogether, a savings account can even help you reach your goal.

For starters, you can sign up for an overdraft protection service that links your savings account to your checking account. Since you can't always predict every expense in your budget, overdraft protection can help you avoid the fees associated with overdrawing your account.

Another way a savings account can be part of your debt management plan is by giving you a place for your emergency fund. Having an emergency fund helps you avoid compounding debt problems by putting unexpected expenses on a credit card. For instance, if you've made the commitment to reduce debt or even get out of debt but suddenly find yourself facing unplanned auto repairs, your only choice may be to use credit. On the other hand, if you have an emergency fund, you can handle the expense without interrupting your debt management plans.

Ally Bank offers a number of financial products suited to your needs, including the No Penalty CD, the Online Savings Account and the Money Market Account—all of which offer competitive interest rates. Learn more by visiting or call live, 24/7 customer care at 877-247-ALLY (2559) today.

Ally Bank, Member FDIC

Related articles: