Give the Gift of Savings This Holiday Season

in First Person: Our Blog, Personal Finance

Gift giving during the holidays can be a challenge. Just ask the guy lugging around some French hens, ten dancing lords and (a modest) five golden rings. Imagine that wrapping job!

While your shopping list may not be as theatrical, it very well might be as expensive. On average, Americans spent almost $1,200 on the holidays in 2016. Not only is this figure large, it is thrown into sharp contrast when compared to Americans’ average savings. According to a survey by GoBankingRates.com, nearly 7 in 10 Americans have $1,000 or less in their savings accounts and 34% have no savings at all.

Spending more than you’re saving is never ideal, but this holiday season can be the perfect time to correct your course. Give the gift of savings to someone you love (or show yourself some love) by opening or adding to a savings account.

There are multiple advantages to opening and contributing to a savings account, especially for those of you just starting to save:

Safety

Savings accounts are as easy and painless as long-term savings strategies come. The Federal Deposit Insurance Corporation (FDIC) protects up to $250,000 of your money in a savings account, and while your assets won’t necessarily grow quickly, they will be safe and readily available to you when a more aggressive opportunity presents itself.

Money when you need it

While there are other ways to save your money, savings accounts make accessing your money simple. CDs or long-term savings bonds are often inaccessible for years or cost you penalties if accessed early. With a savings account, your money is there when you need it for whatever life throws your way.

Easy to open

The first part of establishing a long-term savings strategy is simply starting, and savings accounts are particularly easy to open. Many banks offer savings accounts with low minimums and maintenance fees, making opening an account quick and painless. In fact, First Internet Bank even offers a Savings Account option with no minimum or monthly maintenance fee (and it’s only $25 dollars to open).

Learn as you go

Learning how to save can be daunting, and finding the time to learn can be a challenge. By opening a savings account, you give yourself the time to learn as your money grows. Small contributions here and there can really add up over time, and if you’re consistent, you can see growth in your account even in the first couple months. Meanwhile, you have removed the pressure to learn everything you need to know right away. You can take your time to figure out your best options while your savings begin to work for you.

Plenty of options

Whether you’re just starting to save or already have some wealth set aside and want a secure place to see it grow, many banks provide multiple savings account options to fit your needs. In addition to our Free Savings account, First Internet Bank offers a Regular Savings account and a Money Market Savings account with different minimums and annual percentage yields to let you decide the best, most effective way for you to save. We also offer a Tomorrow’s Tycoons account for savers under 18 with no monthly fee for a gift that the kids won’t outgrow.

You could go with the standard gift of a nice pair of socks or some tasteful earrings this holiday season, or you could try the unexpected gift of savings (that will pay for itself and more). And, bonus: you don’t even have to wrap it!

Curious about how to start saving or want to learn how best to maximize your long-term saving goals? Contact a First Internet Bank Relationship Banker at bank@firstib.com or 1-888-873-3424 to learn how to give — or get — the gift of savings.