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Okie Life

Helping fellow Okies navigate financial life.

Not Your Parents' Savings Strategy

February 1, 2024

Newsflash: it’s not the 1950s anymore, and the savings strategies from decades past just don’t cut it anymore. Now, what you do with your money is just as important as earning it in the first place.

How do you maximize your money potential without the one-size-fits-all savings plans our parents were used to? Let’s sus out👀some of the top options to save today.

Back to the Basics

A traditional savings account is like the hoodie you’ve had since high school — it’s familiar, comforting and still keeps you warm. These accounts are the staple piece of any savings plan and a great way to generate passive income on interest.

Most reputable financial institutions have a savings account you can easily open, but make sure
you check out all the interest rates available before you commit.

This is the saving option most people know about, but what if you want more than the basics?

Beyond Traditional Savings

To figure out how you’ll shake up your savings plan, start with a simple question: “What do I want from my savings?🤔🏦”

🏔️💰Elevated Interest with High-Yield Savings

So, you're ready to start saving but don’t quite have the patience for a traditional savings account. Well, then you might be interested in its more experienced older sibling, a high-yield savings account.

This type of account is similar to a traditional savings account but with the added benefit of tiered interest rates.💪This means that you can earn a higher interest rate on your savings, helping your money grow faster over time.

🏧💵More Flexibility with Money Markets

If you’re looking to save but worried about your money being tied up, a money market account can be the dynamic account you need in your life!

These accounts give you the best of both worlds. They typically generate (compound) interest based on your current balance but with fewer restrictions on how and when you can withdraw funds. Spending and saving from one account is also a convenient way to declutter your financial space.

💸🔋High Power Savings with CDs

Certificates of deposit (CDs) are what traditional savings want to be when they get older. CDs have fixed, high-yield interest rates that typically give you the best bang for your buck in pure interest.

However, you have to be patient. The money you put in a CD is going to be inaccessible for the length of time defined in your terms (unlike traditional savings that generally give you freer access to your funds).

Ranging from months to years, CDs come in both short-term and long-term varieties.📅Longer terms often provide turbo-charged rates but at the expense of holding your money for an extended period. Shorter terms are still valuable, but it’s all about finding the right interest rate and term length that works for you.

📈💸Steady Climbing the Savings Ladder

To take it a step further, you can explore CD laddering. This strategy involves staggering the funding of multiple CDs to maximize savings and allow for more regular access to funds.

For example, let’s say you fund a CD with a 6-month term. Then, a month later, you fund another CD with a 6-month term. And another a month later. This creates a ladder with you on a continuous loop of super saving. PLUS, you’ll get access to those newfound funds while others are still growing on the ladder.🪜

It’s a smart strategy (and it works), but make sure you feel confident about the schedule that funds will be made available before you start climbing your ladder.

Automate & Generate More

Some options don’t involve opening new accounts or setting aside large chunks of cash. Here are a couple of low-effort savings hacks to add to your repertoire.

🙈💵Hide Money from Yourself

How great is it to find a random $20 bill in your pocket? Imagine if that money had been sitting in your savings account, earning interest instead.

Enter: automatic payroll deduction.

Adding an automatic payroll deduction is a set-it-and-forget-it strategy to keep cash coming into your account. This will automatically send a portion of your paycheck to your savings account. You decide how much! Even small deposits every pay period will add up faster than you’d think. 🔃

👌💳Get Those Benefits

Now, let’s talk about earning by spending. Today, certain checking accounts often offer rewards programs that provide benefits just for making everyday purchases. Think cash back, gift cards and more.

Other benefits include savings assistance, like the round-up feature on our Rewards and Rewards+ checking accounts. That takes all the change from every transaction and automatically deposits it into your savings account.

Make the most of your swipes and see what account fits your lifestyle best. Just remember to use those rewards wisely!🎁🎁🎁

Your Savings Era

Prices are up, and interest rates have changed over time, but there are still options to✨slay✨ your savings goals. Whether you’re looking to diversify your accounts or just set aside some extra cash, we can all bring our savings strategies into the 21st century together.

Have questions about which options are best for you? We’re Happy to Help!

 

The information and topics features are for information purposes only and does not constitute legal, tax or financial advice. All financial situations and circumstances are different and may not apply to the specific information provided. Seek the advice of a financial professional, tax consultant, or legal counsel to obtain guidance specific to your needs.