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3 Myths About Savings Accounts
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Posted July 15, 2015
1. My money is safer with me.
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It might seem like your money is safe with you, but it’s much safer stored in your account at a credit union. Credit unions are federally insured by the NCUA. That means that should anything happen to the financial institution, your money will still be available for you. If it’s stolen from your wallet or purse, it’s most likely gone for good.
2. It’s fine if I save later on in life instead of now.
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You’re in college and probably don’t have a lot of money to put in a savings account, but you should still be saving. After graduation comes a huge transition. It might take a little longer than expected to find employment, maybe you have to pay for a big move to a different city, or you have to buy professional clothing for your new job. In every case, you’ll need money. Start saving now; any amount will do. Even saving $50 each month during the school year, will get you $450. That’s a great start to preparing for your future.
3. Dividend rates are low, so it doesn’t matter if I put money into a savings account.
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It matters. Rates on dividends go up and down with changes in the economy. Even with low rates, though, you’ll still be making money. Using the previous example, let’s say you keep that $450 in a savings account and continue depositing $50 each month. In two years time, your savings account with the added dividends will be at $1,652.05. You could afford a lot with that amount.
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