Everyone knows they should be saving… but knowing you should doesn’t always translate into action. That’s where automation – and a great local savings account in Indiana – comes in.
Multiple ways to automate your savings exist, but the ultimate goal is the same: to remove the manual decision-making behind putting money aside each month. When you manually make the decision to save a certain amount each month or paycheck, it opens you up to making mistakes. You might forget to save 10% of your paycheck, or you might skip one month for any number of reasons and struggle to get back into the habit.
So, when you automate your savings, you’re much less likely to miss these opportunities to save. One of the most common ways to achieve this is by setting up an automatic transfer once a paycheck – but an even easier way to save is with the Round-up savings program.
How Round-Up Savings Works
Round-up savings features – such as Security Federal’s “Keep the Change” savings program – are a unique service that not every financial institution offers. By “rounding up” every debit card purchase, this feature makes you save without even thinking about it – in a way that is not likely to affect your monthly spending budget.
How a round-up savings account works is simple:
- Let’s say you use your debit card to purchase a nice cup of coffee for $6.59.
- Your purchase is automatically rounded up to the nearest dollar – in this case, $7.00.
- The extra $0.41 is automatically transferred to your linked savings account at the end of the day.
If you make multiple purchases with your debit card on the same day, there will still only be one automatic transfer at the end of the day. Each purchase will be rounded up, and the spare change will be added together for one lump-sum transfer. For example, if you bought the coffee for $6.59, some necessities for $12.23 and a quick lunch for $16.30, then there will be one automatic transfer of $1.88.
Round-up savings is an effortless way to reduce your stress around saving and making progress on your financial goals. You don’t have to think about how much to save each paycheck, or whether your budget can handle it – you just save every time you use your debit card.
Pair Your Round-Up Feature With the Right Savings Account
Savings accounts can come with a variety of options and benefits, which can also make it difficult to know which one to choose. Which savings account you decide to open depends on your goals.
If you’re interested in a round-up savings program…
…then consider opening a personal savings account with a $0 minimum opening deposit, such as Security Federal’s Personal Savings Account. With no opening deposit required, you don’t have to worry about having the additional savings up front. You can just open the savings account, set up the Keep the Change feature and start saving right away.
If you’ve built up your savings…
…then you may want to consider a Money Market account. Money Market accounts help you earn dividends at a higher rate of interest than on your personal savings account, but have higher minimum balance requirements.
If you have a specific goal in mind…
…then a specialized savings account may be the right choice. At Security Federal Savings bank, we offer Health Savings Accounts (HSAs) for those with high-deductible health plans, as well as Christmas Club accounts and Certificates of Deposit (CDs) to help you save for future goals.
Bank Local. Save Today.
When you’re ready to start growing your savings automatically, we’re here to support you as your local bank. Banking at a local financial institution lets you take advantage of unique benefits and friendly service that truly understands you and the community. Plus, by supporting a local bank, that local bank can support the community in turn, helping to boost the financial health of you and your neighbors.
Open your savings account online and start “Keeping the Change” today. Learn more on our Savings Account page.