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Is Your Money in the Best Savings Account for You?

Savings accounts have the reputation of being safe, but not growing your money very quickly. While this is mostly true, there are certain savings accounts that give you added advantages that make them especially good for mature investors. To get the most out of your savings, try these savings accounts geared towards seniors:

Online IRA Savings Account

If you’re not already using the internet for banking, don’t let the “online” part scare you away. An online account of any kind can make it easier to pay your bills and see activity on your statement at any time.  In fact, many banks are tailoring their account offerings to seniors specifically because of demand for tech-savvy solutions from this sector.

The primary benefit of an Individual Retirement Account (IRA) is the tax advantage because when you put money in an IRA, you won’t pay taxes on it until you take it out and you may be in a lower bracket later on.  Putting money away in an Online IRA can:

  • Reduce what you pay in taxes
  • Keep your money safe while earning a higher interest rate
  • Give you more money to earn interest from
  • Save you money on fees that traditional (non-online) accounts charge

 

Certificate of Deposit (CD)

CD’s are a great way to set aside a sum of money for a specific amount of time and can range from a month up to several years. They typically earn a higher interest rate than other account types and this rate is fixed meaning it is easy to estimate exactly what you will earn and be able to plan accordingly.

However, their biggest advantage is their security since they are insured up to the maximum that the FDIC will allow. Summary advantage:

  • Higher interest rate than standard savings account
  • Steady growth
  • Maximum FDIC insurance

 

High Yield Savings Accounts

Popular for saving for retirement, high yield accounts are also good after retirement, depending on your goals. As the name implies, these accounts offer a higher interest rate than regular savings accounts.

Finding the right high yield for you can be slightly tricky since minimum deposit, compounding method and a variety of other factors vary from bank to bank. To learn more about finding the right yield for you, read Handling High-Yield Savings Accounts.

Note: FDIC insured banks and NCUA insured credit unions, will insure your money up to $250,000. If you have more than this to invest, consider diversifying your savings.

 

Finding a life plan community that values you and your retirement money is another way you can make your retirement rewarding. The Cedars of Chapel Hill makes takes the stress out of planning your finances by offering a range of medical care options, onsite dining, recreation and more. Get in touch with The Cedars lifestyle here.