More than one-third of Americans report they have under $1,000 in retirement investments and savings-not including their home or traditional pension plan-and many cite that not earning enough income is a major stumbling block. That's why any type of savings plan is better than none, especially if you've already reached middle age.
Aside from 401(k) programs at work and other post-tax retirement accounts, a passbook or statement savings account offers another option for saving. Although traditional savings accounts accrue less interest and have lower annual yields than the usual retirement saving plans, these savings vehicles still have lots to offer as part of a retirement savings plan.
Quick Access to Cash
A passbook or statement savings account gives you fast and easy access to cash when you need it. Interest rates on traditional savings accounts remain low, but they give you an option for having money set aside to cover emergencies or other unexpected expenses that may occur particularly after retirement when your monthly income may be lower.
Unlike other vehicles for retirement savings, such as certificates of deposits (CDs), individual retirement accounts (IRAs), and other long-term savings products, there is no penalty for withdrawing cash from a regular savings account.
Savings bonds, mutual funds, and money market accounts are savings products that offer higher interest rates, but cash isn't as easily available when you need it. While money market accounts offer immediate access to your money and have a higher rate of return than a regular savings account, they usually require a minimum balance.
CDs also offer higher interest rates and annual yields than traditional savings accounts; however, they restrict access to your money. The withdrawal penalty that you pay if you cash the CD before its expiration date can be higher than the interest it has earned.
Safe, Low-Risk Investment
Another benefit of a traditional savings account is that it's insured by the Federal Deposit Insurance Corporations (FDIC) for up $250,000 for savings accounts should the bank or savings and loan association where you have the account fail. However, the money is generally safe because the financial institution where you do business invests depositors' money in loans-often mortgage loans.
Inflation keeps the interest rates of regular savings accounts low, but your risk of losing the money is about zero. While you can earn more money by investing those dollars in higher-yield investment products, the investments come at higher risk.
Small Savings Still Add Up
Any savings strategy that you employ to help set aside money to use after you retire is well worth the effort. Although the balance in a savings account grows slowly, it builds over time. The more money you save, the better off you will be. Even if you have other retirement savings and investments, including a traditional savings account in your retirement portfolio can help you reach your long-term financial goals as the account will compound the yield on a daily basis over the years.
No matter how low your current budget, increasing your savings by a small amount means more money for retirement. Since saving even a little money each month can add up over time, it pays to put a set amount or percentage of your earnings into a savings account every pay period or month. Afterward, forget the money is there so that you aren't tempted to spend it on things you don't necessarily need.
Many banks and savings and loan associations offer the convenience of automatically transferring a set amount from your checking account to your savings account each month. That way, you are assured that the money makes its way into your savings. The financial institution may even waive any monthly fees, provided you make regular deposits. Put that money into savings too and gradually increase the amount of money you save to increase your retirement savings even more.
If you are looking for additional ways to save for your retirement, Doolin Security Savings Bank is more than a mortgage provider. As a financial institution, it has a long-respected history of offering a variety of other banking services and products including checking accounts, mutual funds, and traditional savings accounts.
Small banks can offer a lot of advantages to consumers, especially compared to banking with large institutions. The benefits vary depending on your situation and the bank involved, but if you're thinking about opening an account with a small bank, you may want to review the following list. Some of the potential advantages may even surprise you.
1. Local Support
Local banks tend to keep their profits and revenue local. This is particularly true when the bank is owned and operated by a resident of the community. In contrast, when people use a chain for their banking, that branch provides some jobs in the community, but most of the key profits go elsewhere, to other towns or states.
In addition, large banks support all kinds of projects, and if your bank is putting money or support into a project that you disagree with, that can run counter to your values. With a local bank, it's much easier to assess what projects your money is supporting, and that makes it easier to bank ethically and responsibly.
2. Lower Fees
In many cases, small banks tend to have lower fees than larger banks. This can apply to monthly account maintenance fees, overdraft or insufficient funds fees, and even ATM fees. However, fees vary drastically from bank to bank, and in some cases, they can even vary based on the type of account you have. It's important to look closely at the account holder agreement while you are doing your comparison shopping.
3. National Connections
A generation ago, if you wanted to access banking services in multiple locations, you likely needed an account with a larger bank. Luckily, that has changed. Now, most small community banks let you access their services from almost anywhere, just like larger banks.
In particular, if you choose a bank such as Doolin Security Savings Bank, you can make ATM withdrawals at any machine with a Plus logo and purchases anywhere that accepts Visa. You can also use the online banking system to check on your balance, transfer funds between accounts, or even pay your mortgage remotely.
4. Personal Service
Another advantage of choosing a local bank is personal service. If you go to the bank to make a deposit, you're likely to see a friendly face and a teller who may know your name. Sadly, that is not the case with most big banks. Additionally, if you call a small bank, you often get to speak to someone who knows you and can answer your questions knowledgeably, rather than a rep in a call center far away.
5. Multiple Loans and Services
Finally, small banks have many of the same services that larger banks offer to their customers. You can open savings accounts, set up IRAs, and buy bonds at many institutions, and beyond that, you can also apply for loans such as mortgages, car loans, signature loans or even small business loans.
In fact, the original purpose of many small banks was to provide the community with loans that helped to make their lives better. The premise was simple. Some residents put their money into savings accounts in the bank, and the bank, in turn, lent that money to community members who wanted to buy houses. As the borrowers paid interest on their mortgages, that provided the bank with interest to pay to the savers.
The benefits listed above might sound like they come straight out of the past, but Doolin Security Savings Bank has lived by those principles since it got its start back in 1896. If you're ready to be part of a long, worthwhile history, contact our bank today.
If you're over 50, you didn't grow up with automated checking, online bill pay, and other forms of online banking. When you got a paycheck, you brought it to the bank and deposited it yourself. When you paid bills, you sent a check or used a credit card.
Now things have changed. You can perform all of these duties safely from your home computer or your smartphone. However, if you don't use caution when banking online, you can put yourself and your financial future at risk. Here are the five most important tips we can offer to help you safely set up online banking and manage your finances from your computer and phone.
1. Choose Your Online ID and Password Carefully
Online banking requires secure login information: a username (also called an online ID) and a password. It's critical to choose an online ID that you can remember easily. Typically, people create an online ID that combines some version of their name and a number that's familiar to them. For example, if your name is John Smith and your wedding anniversary is May 6th, you could pick the online ID, JSmith56.
After you've created an online ID, you'll need to choose a password. Your password shouldn't contain any information that a cyber thief could guess. That means you shouldn't pick anything related to your social security number, your street address, your name, or your birth date. Create a strong password with a mixture of upper and lowercase letters, numbers, and special characters.
2. Update Your Computer with Antivirus Software
Malware and other viruses can wreak havoc on your computer. Now that you've started online banking, they also can break into your account and collect your secure information. Protect your computer by downloading antivirus software with regularly scheduled, automatic updates.
3. Log Out of Your Account When You're Done
Though online banking is generally secure, it is susceptible to user error. Specifically, people tend to leave their accounts open, putting them at risk for cross-site scripting and session hijacking.
To avoid this, log out of your account after you pay bills, transfer funds, or use online banking for any task. As an extra precaution, you can also clear your browser history after every online banking session.
It's also important to limit access to your accounts from your phone. People lose smartphones all the time, and thieves pick them up and steal secure information from open apps. Use a screen access code to open your phone, and remember to log out from your online banking window after you perform any transactions.
4. Don't Save Your Passwords on Your Computer and Your Smartphone
Another common security risk is the saved password. You log into your account, you hit "Save Username and Password," and your computer saves your login information. Every time thereafter, your computer opens up your account automatically because the login information has been stored permanently. The same thing can happen with your smartphone.
If someone steals your computer or smartphone, your previously saved passwords will give them your account information. With this access, they can quickly transfer or remove funds from your bank account.
5. Monitor Your Accounts, and Contact Your Local Bank About Any Issues
Online banking gives you increased visibility into your bank accounts. Use your new online banking access to pay close attention to your finances. If you see any evidence of foul play, notify your bank.
Review these tips before you begin banking online. Doolin Security Savings Bank helps countless individuals set up, manage, and protect their online banking accounts. Enroll now to get started today. With two convenient locations in New Martinsville and Parkersburg, WV, we offer free online banking to checking and savings account holders.