Savings: What Works For You?There was a time when banks offered their customers little variety in savings accounts. You had your choice between a
Passbook and a Certificate of Deposit. Today, however, things have changed for the better. There is an account for practically every savings need.
So whether you want a savings account with easy access or are prepared to lock up your money long-term for a higher rate... whether you're comfortable
with a passbook or prefer a statement... if you need the convenience of a linked checking account or banking machine access... there's a savings account for
What Are Your Savings Needs?The following questions will help you get a feel for what kinds of savings products might suite your needs.
- Do you need access to money quarterly? monthly? weekly? daily?
- Are you saving for a particular goal? If so, how much will you need, and when?
- Do you want to receive your interest periodically or allow it to stay in the account and compound?
- Would you like banking machine access? Inline banking, telephone banking transfer or bill payment capabilities?
- What do you feel comfortable with? A traditional Passbook? A monthly or quarterly statement? A certificate?
- How much can you afford to save?
- Do you have a lump sum to start with, or do you need to gradually build your savings?
- Do you think that an automatic savings plan would help you to be a more disciplined saver?
- Is saving for retirement in your plans?
- Would it be convenient for you to have a savings account linked to checking?
- Would limited check writing capabilities help you manage your finances better?
Now that you've thought about the things you need from your savings account, you can review the savings options available from Dollar Bank. One of them
is sure to meet your needs.
Basic Savings PlansIf your savings needs are fairly basic, a simple plan such as a Passbook or Statement Savings account may be best for you. Both
are easy to get started and quite affordable because the deposit required to open the account is small, and both give you the security of steady, dependable
A Passbook Savings account lets you keep your savings history handy in a convenient record booklet. You can withdraw or deposit as much
as you want any time you want simply by presenting your Passbook at any Dollar Bank office. There's no service charge or penalty no matter how low your
Statement Savings gives you the same flexibility as a Passbook account, but with a monthly statement rather than a record booklet. In
addition, you'll be able to use banking machines for routine transactions such as withdrawals and deposits. And you can check your balance or get a history
of your account by phone at any hour of the day. There's another nice benefit, too - you can "link" your statement savings account to any Dollar Bank
checking account for added convenience. You'll get a single statement that lists all of your checking and savings activity.
Statement Savings make great starter accounts. They're good for teaching children the value of savings. They also make sense for short-term, smaller ticket
savings goals, or if you aren't able to put a lot of money aside right away.
Higher Interest Savings PlansIf you like to keep your savings simple, but prefer to earn a bit more interest than the basic savings plans provide,
you should be pleased with our higher interest savings accounts - Premium Passbook/Passbook Plus and Premium Statement Savings. They are very similar to the
Passbook and Statement Savings accounts described above, but they reward you with higher interest for keeping a higher balance. Choose from a handy record
book or a monthly statement.
If you need to keep your savings, or a portion of it, available for short-term needs, these accounts are a sensible
choice. You can get to your money when you need it, but you earn a secure, competitive rate on the funds you keep in your account. There's no penalty for
withdrawal, just steady earnings and easy access.
You might use a Premium Passbook/Passbook Plus or Premium Statement Savings account to save for
the near term - maybe a down payment for a new car you'll be purchasing when your high school senior goes to college, or a special vacation that's a few
anniversaries away. Or, it could be your "safety net" to cover emergency needs like replacing the furnace or meeting unexpected medical expenses.
Specialty Savings PlansPerhaps your savings needs are a bit more complex; you have a variety of goals and may need several different savings plans
to make them work. Dollar Bank offers a variety of specialty savings plans to suit your particular needs.
Certificates Of DepositsWhen it comes to safe, secure investments with a guaranteed return, it's hard to beat certificates of deposit. You can
select the term of your choice (from 3 to 120 months) with a rate that's fixed for the entire term. So there are no surprises. Unlike some alternative
investments, there's no danger of losing principal. And you don't have to worry about market risk - you are guaranteed to earn the rate promised regardless
of what happens in the financial markets.
It takes more money to open a certificate than a more traditional savings plan, but the rewards are
greater as well. Dollar Bank offers both a growth and income option, so you can choose a plan that suits your needs. Either keep your earnings in your
account to benefit from compounding interest, or receive earnings on a regular schedule to supplement your income. If you choose to receive your interest,
you can even have it directly deposited to a Dollar Bank checking account for added convenience. And all Dollar Bank certificates can be reinvested by
CDs are a great savings vehicle if you're willing to tie your money up for the term of your choice. But they are not so great if you need
regular access to your funds. After all, you do have to commit to locking up your money for a specific term. If you want to realize the higher return of a
CD, but are concerned that you might need to get to your funds you can "ladder" your CD deposits. This simply means that you invest some of your money in a
longer term, say 24 months, and keep some shorter, say 6 months. That way, you can maximize your return while heightening accessibility. For more
information on laddering, click here.
Many savers use CDs for a variety of reasons - saving for a college education, a
down payment on a home, to start a business, even for retirement or a rainy day. Others use the interest to supplement their income. Regardless of your
purpose, you'll benefit from keeping at least a portion of your savings in an insured investment with a guaranteed return.
On all certificates
there is a penalty for early withdrawal.
Flex CDYou may not have a lot of money to start a savings account, but you still want to get started down the road to financial security. The Flex
CD can help. The minimum deposit to open the account is low, and you can withdraw when you need to. It's sort of like a "starter" CD that gives you the
steady interest of a certificate and the flexibility of a traditional savings account.
With the Flex CD, you'll earn steady interest for each
month of the 12 month term, plus extra interest for each month that you leave the money in your account. Keep your money in for the full term and earn the
highest rate. So, you can choose to let your savings grow, or withdraw a minimum of $250 when you need it. Withdrawals are permitted every eight days after
the account opening date, or after any previous withdrawal or automatic renewal.
Holiday ClubsThese accounts have a very specific purpose - they offer you a methodical savings plan for your holiday spending needs. Most of us
have experienced the unpleasant reality of a holiday when money was short and we had to compromise on our plans. A Holiday Club will help you to avoid such
Once you've set up your Holiday Club account, you can make a regular monthly deposit. For added convenience, you can have your
Holiday Club deposit automatically transferred from a Dollar Bank checking account. At your specified payout date, the money you've paid in and the interest
you've earned is disbursed to you by check.
Many people prefer Holiday Clubs because they enjoy the security of knowing that when the holiday
season comes, they won't be left without enough money to purchase the gifts they want. They like to plan ahead to ensure a stress-free holiday. If you'd
like to start a regular savings to make your holidays more pleasant, a Holiday Club account could be right for you.
Individual Retirement AccountsAlthough there may be many uncertainties about planning for retirement - how long you'll live, where inflation is
headed, what the income tax laws will be - one thing is certain. It pays to start early. Everyone should be making provisions for retirement, even folks in
their twenties. (To see information about saving for retirement, click here.)
An Individual Retirement Account is an
important part of your savings mix. In combination with your company savings plan and Social Security, it should work to provide you with a comfortable
retirement. Dollar Bank offers a variety of IRA investments, including a wide range of time deposits. And for your convenience, you can handle your
reinvestment instructions by phone.
It's Your ChoiceRegardless of which account you choose, there are a few benefits of saving with us that you ought to consider.
Insured SavingsEach depositor at Dollar Bank is insured to $100,000 by the FDIC. Depending upon how accounts are titled, and based on family size,
coverage may be expanded. This level of protection is not offered by many alternative investments. It means that the full faith and credit of the United
States government is behind your deposit.
Pay Yourself FirstNo matter which savings option you choose, it pays to pay yourself first. Don't wait until the end of the month and save your
leftover funds (if there are any). Instead, set aside your savings at the beginning of the month, effectively paying yourself first. This will help you to
be a disciplined saver, and to watch your money grow!
Dollar Bank can assist you by setting up automatic transfers from checking to your savings
account. (For more information on paying yourself first, click here.)
Only you know for sure which savings plan or
combination of plans is right for you. Feel free to talk to a Dollar Bank Representative about your savings needs. Call 1-888-418-BANK for assistance, or
for a list of Dollar Bank locations click here.
The information presented in this publication is general in nature; it is not our intention to provide specific
advice to individuals or a comprehensive discussion of the subject matter. We suggest that you consult with your
financial or tax advisor, accountant or attorney to obtain specific advice or comprehensive information.