There are several big benefits to opening a new savings account in 2022
The start of a new year often presents a great time to reassess your financial goals and make money moves that can set you up for a secure future. But you’ll need to be smart about the decisions you make, since most people only have so much money to go around and setting too many goals can be overwhelming and undermine your chances of success.
As the new year begins, it’s worth taking the time to think about whether opening a new savings account in 2022 should be one of the items on your to-do list. Here are a few key questions to ask yourself to help you decide.
Do you currently have a savings account?
If you don’t already have a savings account, you should almost definitely open one in 2022. That’s true even if you’re paying off high-interest debt or are working on accomplishing other financial goals.
Everyone needs to have at least some money saved to cover emergencies. With no emergency fund, any surprise expense could send you into debt. That’s why it’s a good idea to build an emergency account even if you’re working on repaying credit cards. Otherwise, you could get trapped in a vicious cycle that undermines your progress and kills your motivation.
Your emergency fund should be kept in a separate savings account, rather than in your checking account where it’s more likely to be spent. If you don’t have any savings at all, open an account in 2022 and start working on building at least a mini emergency fund to give you some financial peace of mind.
Are you maximizing your interest earned?
If you already have one or more savings accounts, opening a new one in 2022 could still make sense. Doing so could be a good idea if you aren’t currently earning much interest on your existing account.
The interest rate on high-yield savings accounts can be much higher than on standard savings accounts your local bank or credit union may offer. And the rate you’re offered can vary a lot from one high-yield account to the next.
It’s worth researching savings account options to find a bank that’s going to pay you the best possible rate so you can maximize the money your savings is earning for you.
Do you have any new financial goals to accomplish?
Finally, if you have any new financial goals that you are working toward, opening a new savings account could be a good idea.
It’s helpful to have a different savings account for each goal you’re trying to achieve. Doing so can enable you to maximize the chances of being successful at hitting your objectives since you can more easily track whether you’re making good progress. You can also set up automated transfers to each savings account to ensure you hit every goal on target. And you’re less likely to take money out of an account for other uses if it is earmarked for a specific goal.
A savings account can be the best place to put money you’ll need within two to five years, as you can earn interest without taking the risks associated with investing in the stock market. So if you have short-term goals you’re aiming to accomplish starting next year, opening a new savings account could be a good first step.
If you’ve decided opening a new savings account makes sense, be sure to research your options carefully and find an account that makes transferring money easy, pays you a reasonable interest rate, and meets your other needs. Then, start funding it ASAP in 2022 so you can get on the path to a better financial future.
