CDs and Savings and IRAs – Oh, My! Understanding Your Savings Options

It’s important to save for a rainy day – everyone knows this. Innumerable accidents, surprises, or life changes can happen at any moment that might cause you financial hardship. There are many options to start hatching a proper nest egg and picking the right one can be intimidating. Let’s take a look at a few of the savings options at Kensington Bank.

CERTIFICATE OF DEPOSIT, OR CDS

As Nerdwallet.com states, CDs are a savings tool that give a higher return on investment than many savings options. They are also low-risk and do not include monthly fees. The big difference between CDs and a traditional savings account is what is called a term length. Instead of adding and withdrawing money at any time, a Certified Deposit is a promise to leave your money for a certain period of time. This could be a couple days or a couple decades. Usually, you’ll find better interest rates in longer term lengths.

CDs do come with penalties for withdrawing too soon, which might seem irritating if you lock in your rate, only to have a better one come along later on. At Kensington, we rolled out our “Raise Your Rate” CDs, giving you the option to raise your rate if they go up, giving you the best interest return possible! If you think interest rates will increase in the future, you can still invest in a CD today. Contact us to learn more.

SAVINGS ACCOUNTS

If you’re looking to save for the future, but you want the flexibility to add or withdraw from the account at any time, Kensington has plenty of savings account options. To start a basic savings plan, all you need is $25 to deposit. The Money Market Savings plans begin our tiered interest plans and require just $2,500 to deposit. Our Rewards Savings Account offers the best rates in savings over $25,000. We also offer Business Savings Accounts with the same great rates and benefits. You can learn more about each of these accounts on our website.

HSAS AND IRAS

IRAs have been around for a long time. Saving for retirement has been a concern for a lot of people for quite a while. An Individual Retirement Account – or IRA – offers special tax advantages to those who qualify.

A Health Savings Account, on the other hand, just recently became a popular investment option. An HSA allows you to save money for eligible medical expenses, usually tax-free. To learn more about either of these plans, contact Kensington Bank.

Saving for the future is easier than you might think. Whether you want to save for a rainy day, for an unexpected accident, or for your retirement, we have plenty of savings options at Kensington Bank.