Smarter Savings Accounts

When people think of savings, they usually think of long-term goals, such as an emergency fund, car or home down payment, etc. However, many people overlook the benefits of savings accounts for short-term goals.

Many financial institutions offer savings accounts for specific goals. Why should you consider opening one of these? First, having a particular goal helps people save. When you’ve identified what you’re saving for, you’re more apt to contribute because it’s something you want, and know the amount you need to save. Saving for a vague amount and unknown use can cause people to not be as disciplined in saving.

While some banking institutions have specific goal-oriented savings accounts available to open (like a vacation, college, or holiday), you can always open more than one general savings account and mark it for “Vacation” or “Holiday”.

Check out some examples below of how these can benefit you!

Vacations

While the expenses for vacations can greatly vary based on how you travel, length of vacation, and number of people, setting aside money for a vacation can still seem daunting. Based on 2024 numbers, the average cost of a vacation for one person was $1,984, and for a family was around $7,936.*

Vacations should be fun and relaxing and there’s no need to pile on financial burden or stress to pay for them. A vacation savings account may be a great option to relieve stress and ensure you can take those deserved vacations each year.

Holiday Shopping

While we’re sure the holidays brought you joy, they may have piled on unnecessary financial stress. On average, Americans spend a little under $1,000 on holiday gifts, décor, and other holiday items.

Wouldn’t it feel great to go into the holiday season knowing you have the funds to cover everything and not go into any debt or max out those cards?

Opening a holiday savings account is a great way to set aside something each month to cover those expenses and truly enjoy the holidays. You can even opt to make it a joint account with your loved ones to boost savings and returns.

The benefits of these savings accounts come from variable interest rates that help grow your savings quicker than a traditional savings account. Another benefit is ensuring these funds are earmarked for specific uses, such as vacations or holidays.  

When it comes to saving, consider these special savings accounts. The future you will thank you and you’re sure to reach your goal quicker having identified a purpose.

Contact your Home State Bank banker today to learn about our savings clubs and how you can stress less and save more.

Member of FDIC and Equal Housing Lender

* https://gogocharters.com/blog/average-vacation-cost/