Setting savings goals for yourself is a great way to stay on track financially and help you budget your money effectively.
Setting savings goals for yourself is a great way to stay on track financially and help you budget your money effectively. But setting those goals is only the first step. To achieve your financial goals, it’s crucial to take action to help you get to where you want to go. When saving money, it’s easy to overwhelm yourself with the big picture of financial security. Maybe you have an ambitious dollar value in mind that you want to see in your bank account. Or, you might have a milestone like a vacation or a home down payment that you’re saving up for.
No matter your goals, making regular deposits into your savings account or opening up a certificate of deposit (CD) are great and practical ways to build up your savings and achieve financial security. As you continue reading below, we’ll explain why savings accounts and CDs are great tools for achieving your financial goals, even when compared to other financial instruments.
Competitive Interest Rates
When you open a certificate of deposit, you can earn a competitive, guaranteed interest rate on your funds. For instance, at Cleveland State Bank, certificate of deposit rates are 5.00% APY for 9-month CDs. Plus, you can earn interest on the money in your savings account, like the CSB Statement Savings account, which earns 0.10% APY.
Little Investment Risk
Another great feature of depositing money into a savings account or CD is that they have little investment risk, unlike other forms of growing your savings. When you open up either of these accounts, you typically receive a guaranteed return, offering a reliable and predictable way to increase your funds.
Though you may find higher rates of return through other financial instruments like investing in the stock market, the low risk associated with CDs and savings accounts makes them an appealing option.
Suppose you’re banking with an FDIC-insured institution, like Cleveland State Bank (CSB). In that case, your deposits are protected up to a certain limit, ensuring that your hard-earned money is safe and protected, even when earning interest.
Out of the common savings instruments available, CDs are a profitable investment you can take advantage of after just a few months. The specific terms and conditions of the CD you open will dictate how quickly you can draw on the profit.
For instance, if you deposit $1,000 into a 6-month CD at an interest rate of 4.00% APY, six months after you deposit the CD, you will get the principal back in addition to your interest earnings. The guaranteed interest rates of CDs mean you will continually profit from these investments.
Grow Your Deposits at Cleveland State Bank
Since 1907, Cleveland State Bank has been dedicated to helping those in our community reach their financial goals. As a community bank, we’re proud to offer all the capabilities of national banks but with a local focus that our clients love.
When you bank at CSB, financial security is always within reach. We are committed to the financial betterment of our community and clients. In other words, we take the time to know your needs and provide you with personal products and accounts that will grow with and for you.
Get started today by opening up a certificate of deposit at CSB to help you achieve your financial goals.