Put aside cash for emergencies and more. It almost always makes sense to keep some cash reserves in a savings account, a certificate of deposit (CD) or a money market account. Not only might this give you the money you need to face an emergency—like an unexpected job loss or medical expenses—but it also may give you the freedom to take advantage of attractive financial opportunities when they arise. Most financial experts agree that it's wise to keep available an amount of cash or cash equivalents equal to three to six months of living expenses. Through careful planning and diligent saving, you can build up your cash reserves and grow your nest egg.
Choose the right account for your cash reserves. As part of your plan to build up your savings, be sure to shop around to find the best account for your needs. It's important to look for a savings account with a great rate and daily compounded interest to help your savings grow faster. At Ally Bank, you might start with an Interest Checking Account, which you could use to help make the most of the money that isn't marked for saving or investing. Then consider focusing on building your savings with an Online Savings Account, a Money Market Account and Ally Bank CDs—all of which can be opened and funded with any amount and no monthly maintenance fees. Explore your savings options at Ally.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.