Challenges and opportunities are integral parts of our lives. And, because you never can predict the unexpected, saving for the “rainy day" when those life-changing events happen can be an important part of any financial plan. "Savings can provide the funds needed to get through major life events," says Robert Schmansky, founder of Clear Financial Advisers in West Bloomfield, Michigan. "Savings accounts are a great tool for having accessible funds [in a place] where you can be sure the money you have saved will be there when you have a need."
With an online savings account, you can easily make deposits into your account via check or electronic transfer, and even set up regular automatic deposits. This allows you to build up your balance over time and earn interest—and at the same time, your money is secure and insured by the Federal Deposit Insurance Corporation (FDIC) to the maximum amount allowed by law.
In general, savings accounts are often used to prepare for emergencies of one kind or another. "Life-changing events can be things like losing your job, losing a spouse, those types of things," says Frank Boucher, owner of Boucher Financial Planning Services in Reston, Virginia. "A savings account can help tide you over during those types of events while you are re-grouping. For example, if you lose your job, it may take some time to find another one. Your savings account is there to cover those living expenses that you're going to have while you're looking."
In short, a savings account can provide some valuable breathing room during tough times. "When you have those things happening to you, you are typically emotionally wounded," Boucher said. "A savings account is the thing that is going to pay your bills and buy the groceries while you lick your wounds, until you're able to start managing your resources again on a longer-term basis."
Savings accounts also can be used to put money away for more positive life-changing events, such as a wedding or a vacation. Your savings can help you take advantage of opportunities like buying a dream home at a remarkable price, taking time off work to explore your passions, or starting a business. Overall, when setting money aside for life-changing events, you want your savings to be there for you.
Whether it's for unexpected expenses or to plan ahead for a major positive change, a savings account can be a good place to put those funds. With an Ally Bank Online Savings Account, you get rates that are consistently among the most competitive in the country. We don’t charge monthly maintenance fees and you can open and fund your account with any amount. You also have access to excellent customer service and our easy-to-use website. Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.