You know saving money is important, but as with most things, it’s easier said than done. So how do you choose a savings strategy that really works? According to George Barany of America Saves, a national, non-profit coalition of various groups that promotes saving, the best savings strategy is putting your savings on autopilot to the greatest extent possible. By that, he means pre-arranging—with your bank or your employer—to have some portion of your monthly paycheck put automatically into a savings account.
How big a balance should you keep? The amount is up to you. Your goal is to save enough cash to cover emergencies and other unforeseen expenditures. America Saves recommends keeping a balance of no less than $500. Jane Bryant Quinn, author and personal-finance columnist, recommends in “Making the Most of Your Money,” that you start by putting away 5 percent of your income every month. Other experts recommend putting away ten percent or keeping up to six months' salary on hand.
Where should you keep your savings? As you research your options, consider the benefits of online banks. Online banks don’t have the overhead of traditional banks, so they can pass the savings on to you in the form of great rates. At Ally Bank, we offer a wide range of products to help you save and manage your money, including a variety of CDs, the Ally Bank Online Savings Account, and the Ally Bank Interest Checking Account.
Learn more about how Ally Bank can help you reach your savings goals at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.