Your savings is money you put away in a safe, yet accessible place.

Think of your
savings as funds you may need to access in the short-term, or in less than three
years. Examples of where you might put your savings are in a savings account, a
short-term certificate of deposit (CD), or a money market account. There are
several factors to consider when choosing a savings account and savings
institution, including safety, convenience, liquidity, and earning potential.

Safety
Most financial institutions are insured by government agencies, such as the FDIC,
to protect your money from loss. FDIC stands for Federal Deposit Insurance Corporation. This agency was created by Congress
to provide insurance for depositors’ accounts up to a value of $250,000. The intent was to provide confidence in the banking
industry.

Convenience
Getting to your money when you need it should be quick and easy. To make banking convenient, many banks provide several
branch offices within short distances of each other. Most banks also provide online services so that you can access your
accounts 24/7.

Liquidity
Liquidity refers to how quickly you can take your assets (savings) and turn them into cash when you need it. In other words,
liquid savings are readily accessible. Financial experts advise that you have at least six months of expense in savings, enough
to handle your monthly bills in case you have an interruption of income, perhaps from loss of your job. This is extra savings,
which should be easily accessible, is called reserve fund.

Earning Potential
You should place your savings with an institution that offers the highest rate of interest. The amount of interest earned on
liquid savings is very low, so you should look to longer-term investment options for retirement.