There's nothing like cash in the bank. It's easy to imagine what it can buy. But imagine what you can afford if you save some of it up. Take steps to make your wish list come true!
Get a Certificate (of Deposit)
One financial tool is the certificate of deposit (CD). At most banks the minimum deposit is $500 or $1,000. You will normally receive a CD's higher interest rate if you leave your money in the account for a longer period of time. For instance, a 12-month CD typically earns a higher rate than a six-month CD. If you get an early start in your savings, you may want to invest in a 24-month or even a five-year CD, which pay higher still. The actual rates will vary, so check around for current rates.
Saving for Yourself
Another possibility is the familiar savings account. Check around for the best interest rate on that type of account as well. As with some interest-bearing checking accounts, the higher your deposit (or minimum daily balance), the better interest rate you may get. An investment account that is very similar to a regular savings account is a Money Market Account. These are not FDIC-insured, but they often pay slightly higher interest and they have traditionally been very safe.
Whatever you decide, it's not too early to get into the habit of smart saving.
Information in this article is of a general nature. It is provided by COLLEGEdata for educational purposes only and may not apply to you or your situation. Please consult a financial or legal advisor before acting on such information. COLLEGEdata is a service of 1st Financial Bank USA, a provider of financial services.