Are you looking for ways to grow your money for the future? Whatever your goal may be—a rainy-day fund or something more substantial—there are a number of financial products that can help you begin saving for tomorrow. Let’s take a look at three of the most common types and show you how they might work for you.
1. Savings Accounts
No matter if you’re young or young at heart, the right savings account can put you on the path to saving steadily.
Our Young Savers Account is designed for children under the age of 18 and can be opened with as little as $20. There’s no minimum balance requirement, and since all balances earn interest, your young account holders will be able to watch their money grow. On the other hand, Personal Savings is available to customers of all ages. This account boasts a low minimum balance requirement and a competitive rate of interest, which can help put your savings program on the fast track.
You can make up to six withdrawals per quarter from your savings account balance at no charge, which means your money is easily accessible. Opening a Young Savers Account or Personal Savings account is easy—bring your opening deposit, Social Security number, and a form of photo ID to your local South Atlantic Bank office.
2. Certificates of Deposit
A Certificate of Deposit, or CD, is a type of savings account that offers you a specific interest rate over a certain period of time. CDs typically offer higher rates of return than savings accounts, but your money is “locked up” for the length of the term. At South Atlantic Bank, you can choose from terms as short as three months or as long as five years. Interest is compounded daily, and as your CD matures, you can roll the interest you’ve earned back into the CD or have it transferred to your bank account.
3. Individual Retirement Accounts
Now let’s look long-term with an individual retirement account (IRA). With regular contributions and the power of compound interest working for you, you’ll be amazed at how much your savings can grow in an IRA over the years. So the sooner you start, the more opportunity your contributions have to grow.
There are three types of IRAs—Traditional, Roth, and Roth Conversions—and each offers distinct tax benefits.
- In a Traditional IRA, you may be able to deduct contributions you’ve made from your income for tax purposes. However, your contributions, along with any interest earned, will be taxed as regular income upon withdrawal.
- On the other hand, Roth IRA contributions are made with after-tax dollars (meaning your take-home pay.) Although you won’t be able to deduct annual contributions from your income when preparing your tax return, you can make tax-free withdrawals after you reach age 59½.
- So, the question is—do you want to be taxed on your contributions now, or wait and be taxed on your contributions and money earned down the line? Many people find the Roth IRA especially attractive, which is why they open a Roth Conversion account. This process allows you to take money out of a Traditional IRA and put it in a Roth IRA—allowing for tax-free withdrawals during your golden years.
Ready to Save?
Visit southatlantic.bank or your local South Atlantic Bank branch location to open your account today.