We are pleased to inform you that account transactions are now displaying again within our online and mobile banking platforms.

This issue was a result of collateral damage from the Crowdstrike incident, which impacted our core banking provider’s ability to supply transaction data to our online banking system.

We sincerely thank you for your patience as we worked to resolve this issue.

Close

Are Savings Accounts Worth It?

A savings account allows you to grow your money over time and can help you plan for short-term goals such as an emergency fund or a rainy day fund. Many people overlook savings accounts because of the relatively low long-term returns that one can expect from a savings account compared to the anticipated returns of ... Read more

Savings-Account-Image of clock and stacked coins

A savings account allows you to grow your money over time and can help you plan for short-term goals such as an emergency fund or a rainy day fund. Many people overlook savings accounts because of the relatively low long-term returns that one can expect from a savings account compared to the anticipated returns of other long-term investments. Before you place your cash in a standard bank account, here are some pros and cons to having a savings account.

Benefits of savings account

  • Low-Risk Investment
    • With long-term investments, you’ll usually lose money over the course of days, weeks or months, but with a savings account, your balance will only go up – that is, unless you withdraw money from it.
  • Easily Accessible Account
    • Most savings accounts can be accessed at any time through an ATM. This is why a lot of people use a savings account as an emergency fund – you can easily access your funds and immediately have the cash to deal with an urgent problem.
  • Earn a (Small) Return
    • Some savings accounts can earn up to 2% interest. Although it’s a small return, every little bit helps and the more you put in your savings account, the more interest you will earn.
  • Low to No Minimum Balance
    • Most banks offer savings accounts with an extremely low minimum balance and in many cases, you can open a savings account with $100 or less.
  • Safe Way to Save Money
    • The money that you deposit into a savings account is automatically protected by the FDIC up to $250,000. This means that if your bank goes out of business, the money in your account will be safe.

Concerns of a savings account

  • Low Return
    • Savings accounts differ from other types of investments and the full potential of your money isn’t always realized, especially when you compare it to other investment opportunities.
  • Limitations
    • Some common limitations include having a minimum dollar amount to activate the account, requiring a minimum balance in the account at all times – or else penalty fees are charged, and limiting the number of transactions in a particular period.
  • Easier to Spend
    • It is a lot easier to spend your money when it is so easy to access. If this is something you’re worried about, consider choosing a Certificate of Deposit versus a regular savings account. CDs offer a higher interest rate and you lose immediate access to the funds unless you’re willing to pay an early withdrawal penalty.

At Points West Community Bank, we offer a variety of Savings Account options, such as:

  • Student Savings Account
  • Savings Account
  • Corporate Savings Account
  • Individual Retirement Accounts
  • Health Savings Account
  • Certificate of Deposits

Let us help you accomplish your financial goals and open up your savings account today. Get in touch with your local banker to find out more!

FDIC-Member-Logo