Our 20s—the decade when most of us begin our professional careers—can be a difficult time for personal savings. There's so much to do—and let's be honest, so much to spend money on—that setting some money aside often falls down the list of priorities.
Parents and grandparents looking for ways to encourage those in their twenties to begin saving may want to discuss the advantages of money market accounts. In fact, many financial planners often recommend money market bank accounts as a smart way for anyone to help build a savings cushion for emergencies or other unexpected needs.
Because deposits in money market accounts at most banks, including Ally Bank, are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum allowed by law, they're generally a safe place to save. Money market accounts usually have higher rates than standard checking accounts. But for a younger generation, one of the big attractions of a money market is flexibility. Money market accounts at Ally Bank give you great rates and access to your funds. Federal law limits checks and certain types of telephone and electronic withdrawals and transfers from Money Market Accounts to 6 per statement cycle. Some transactions are unlimited. You can make as many deposits as you wish. If you need access to the money in your Money Market Account, you can make unlimited ATM withdrawals or call us any time and request a check made payable to you. That freedom can be particularly attractive to those just starting out, especially if they're worried about needing money unexpectedly.
Another incentive for younger savers is the convenience of online banking. In fact, online banking may be the most popular option for those in "Generation Y" (people in their 20s and early 30s). "Online banking is the future of banking as more Generation Y-ers enter the marketplace," says Nessa Feddis, ABA vice president, senior counsel and retail banking expert. At Ally Bank you can open and fund a money market account with any amount, from the convenience of your own home.
Once you've convinced your 20-somethings to start building that essential emergency reserve, you may want to talk about the value of other ways to save, including a Roth (or Traditional) IRA, as well as certificates of deposit (CDs), both of which can be important to a balanced long-term savings plan.
Take a look at the savings options available here at Ally Bank. We offer money market accounts, CDs and IRAs with rates that are consistently among the most competitive nationwide, based on rates published by Bankrate. Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC