Whether you’re building an emergency fund, saving for a future purchase, or planning for retirement, not every savings goal should be treated the same. Understanding when you’ll need that money can help determine the best place to keep it.

A Simple Approach to Savings

Money You May Need Soon

Every savings plan should start with money that’s easy to access. This includes your emergency fund and money you’re setting aside for short-term savings goals such as a vacation, home improvement project, holiday spending, or other planned purchases.

A savings account is a practical place to keep money you’ll likely need soon.

For larger balances, a money market account can help your savings earn more while still giving you access to your funds.

One of the easiest ways to save more is to make it automatic. Even a small transfer from each paycheck can add up over time and help you build savings consistently.

Money You Won’t Need Right Away

If you have funds you know you won’t need for several months or longer, a certificate of deposit (CD) can be a smart place to keep that money.

CDs reward patience. If you don’t need immediate access to your money, a CD may allow you to earn more on those savings than a traditional savings or money market account.

For some savers, CDs can be a good fit for a future purchase, a planned expense, or other goals that are still a year or more away.

Money for the Future

If you’re saving for retirement or other long-term goals, it may be time to look beyond traditional savings accounts. Investments, IRAs, trusts, and other wealth management tools can all play a role in helping you reach those goals.

The longer your time horizon, the more options you may have and the more important it becomes to have a plan in place.

Different Goals, Different Tools

There isn’t one “best” place to keep your money. The key is understanding what you’re saving for and choosing the tools that best support those goals.

At American Bank & Trust, our team can help you explore your options and build a strategy that fits your financial goals, whether you’re building an emergency fund, saving for a future purchase, or planning for retirement.

Learn more or connect with a local banker at abt.bank.