TrustBank is ready to help you build a safety net for your finances. You need to be prepared for the unexpected when it comes to providing a solid financial foundation for you and your family. Whether you have $10 or $10,000 to start your savings program, here are some basic rules you will want to follow:
Begin with a Checking Account
To manage the money you use everyday, choose a TrustBank Checking Account with Online Banking Access. You will want to automate the process of managing your money by taking advantage of Direct Deposit and using Online Bill Pay and your ATM/CheckCard. Online Banking history is a great way to keep a close watch on your balance.
Set Aside A Rainy Day Fund Try to set aside at least six months' living expenses in an insured TrustBank Savings account for emergencies such as job loss, illness or an accident. One simple way to make a habit of saving is to arrange for an automatic payroll deduction with your employer (if it is offered). Another way to make saving easy is to set up an automatic transfer from your TrustBank Checking account to your TrustBank Savings account. Think of it as paying yourself first. Using preauthorized transfers is the fast and easy way to add funds to your savings account. Additional transfers of funds during the month can be done quite easily via TeleBank or Online Banking.
Build Your Savings to Invest in Your Future
After you have established your Rainy Day Fund of six months’ living expenses in your TrustBank Savings account, it is time to work toward accomplishing some of those larger financial goals. It might be saving for the down payment on a vehicle or a home. It could be that you have a dream vacation in your future. You may want to start putting aside money for a child’s education expenses. Regardless of your financial need, TrustBank has a great tool to help you accomplish your savings and investing goals – the DreamBuilder Certificate of Deposit. This is a CD that can be opened with a small initial deposit, but is designed to grow as you choose to contribute recurring amounts to the Certificate of Deposit on a regular schedule. All it takes is $50 to open a DreamBuilder CD. Then you choose a 12-month, 18-month, or 48-month term for the certificate maturity date. You choose the dollar amount transferred into the CD every month; and you choose the date you want the money transferred. At TrustBank, we're here to help make your dreams become a reality.
Insure Yourself Adequately The amount and type of insurance you need depends on your age, health, income and number of dependents, and any coverage you have at work. Most people insure their life, health and property. Insurance is a tool to protect your wealth when things go wrong.
Determine Your Investment Goals After you have established your Rainy-Day savings fund, and have used the DreamBuilder Certificate of Deposit to establish a solid base to your savings plans, you are ready to consider larger investments goals. The goals you set and the time frame to achieve them are important in determining the amount of risk you can take. Longer-term investors can usually afford to take greater risks, whereas those with shorter-term goals must usually be more conservative.
Use Tax Advantaged Savings Plans Open an IRA, SEP or KEOGH plan, or participate in your employer's 401(k) plan. The interest (or dividends) earned on these accounts is tax-deferred. That is, you do not pay federal taxes on the interest you earn on these accounts until withdrawal.
Investigate Before You Invest No matter how much you are investing, be certain you understand the investment. Is it insured? Is the return guaranteed? Is your principal protected? Can you get to your money if you need it? Make sure you know what you are getting into before you hand over your money.
Diversify Your Investments Most people cannot afford to put all their eggs in one basket -- they diversify their investments in order to limit their risk. For example, while they may have some of their money in alternative investments, they also have a significant portion tucked away in insured bank savings products.
Stagger Maturity Dates To cushion against interest swings, vary the maturity dates of your investments and time deposits. This will allow you to take advantage of favorable changes in the market, while at the same time providing some protection against rate drops. And, you will have access to your money at regular intervals.
Be Patient! Regardless of what you may hear, no one gets rich overnight. When you have established your investment goals and strategy, stick with them. Keep an eye on short-term results, but do not lose sight of your long-term objectives.
Saving Is The Best Way To Accomplish Goals There are many "get rich quick" schemes that unfortunately too many people undertake. Investments that promise amazing returns usually have amazingly high risk. It is more prudent to start with a well-conceived savings plan that offers steady growth and a guaranteed return. The combination of a TrustBank:
can be the right combination to get you started on road to financial security. At TrustBank we provide the tools to help you accomplish your financial management and savings goals.
TrustBank is here to help you achieve financial success!
TrustBank is participating in the FDIC's Transaction Account Guarantee Program. Under that program, through June 30, 2010, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. TrustBank's NOW Accounts are excluded from this program. Coverage under the Transaction Account Guarantee Program is in addition to and separate from the coverage available under FDIC's general deposit insurance rules.
¹ iChecking - Earn 7.00% APY (Annual Percentage Yield) on balances up to $1,000.00 and 0.20% APY on balances over $1,000.00 when each of the following criteria are met each month: 1 Direct Deposit, 2 Bill Pays or automatic payments, 10 debit card purchases, receive E-Statements, and access Online Banking at least one time. If any of the criteria are not met, 0.02% APY will be paid on the entire balance. Rates are effective as of July 1, 2009 and are subject to change.
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