logo
Login Subscribe
ePaper
google_play
app_store
  • News
    • Obituaries
    • Lifestyle
  • Sports
  • E-edition
  • Calendar
  • Archives
  • Contact
    • Contact Us
    • Advertisers
    • Form Submission
    • About Us
    • News
      • Obituaries
      • Lifestyle
    • Sports
    • E-edition
    • Calendar
    • Archives
    • Contact
      • Contact Us
      • Advertisers
      • Form Submission
      • About Us
Savings are great for short-term goals, too
Commentary
October 8, 2024
Savings are great for short-term goals, too
By JANIS RISLEY EXT. ED. FCS/4-H

Thinking about going on a vacation, paying for a wedding, buying gifts for birthdays and holidays, or perhaps you have another shortterm money goal? We often think of savings for long-term purposes like retirement or buying a house, but they are great for short-term objectives too. Money in an account that is lowrisk (less likely to lose money), allows for easy access, and provides opportunity for growth, is a great alternative to a piggy bank. Let’s look at some options to help you better meet your goals and keep your money safe.

A traditional bank savings account is a great place to put money aside for special occasions, as they allow you to withdraw funds easily and earn some interest. These accounts do not come with checks and usually limit the number of withdrawals you can make, which helps you avoid the temptation to spend your savings before you’re ready. You can even set up automatic transfers from your checking account to keep your special savings separate. This separation really helps avoid spending your money frivolously.

Some banks offer “holiday club” accounts.

These are similar to traditional savings accounts with a focus on meeting a specific savings amount in a certain timeframe. Holiday club accounts automatically withdraw funds from your checking account each month. The total amount saved is transferred back to your checking account when you have met your goal, so that the funds are available for you to spend as planned. These accounts are a convenient way to help you save regularly, but they may have lower interest rates compared to other savings accounts because they are very short term. There is also typically a penalty fee if you make an early withdrawal, so be sure to read all about the plan before you start.

Money Market Deposit Accounts (MMDAs) are an attractive option for saving. They offer higher interest rates than traditional checking accounts and more options for accessing your money than traditional savings accounts. You can withdraw money more freely (with a debit card or checks) than from holiday club accounts or CDs, but there are some restrictions on the number of withdrawals you can make on a monthly basis. MMDAs generally require a higher initial deposit and minimum balance than other savings accounts. It’s important to note that these deposit accounts are different from money market mutual funds. Money market mutual funds are securities that incur investment expenses, are subject to more risk, and are not insured by the FDIC.

Certificates of Deposit (CDs) are savings certificates where the money you put into them are invested by a bank for a set period of time – you can typically choose between one month and five years – and the bank gives you the money back with interest. The longer the term the more interest you earn. CDs have higher interest rates than traditional savings accounts, but you cannot withdraw the funds until the end of the specified term. If you need to withdraw the money before that time, you will have to pay a penalty fee. If your institution offers CDs with various maturities of less than one year, you may also consider timing the maturity dates of CDs purchased throughout the year to coincide with the date of an anticipated expense.

Before putting your money into one of these accounts, be sure to compare current interest rates offered, as rates vary by bank and change constantly. The Truth in Savings Act requires financial institutions to provide a common method of disclosing rates of interest earned, known as the Annual Percentage Yield (APY), to allow consumers to effectively compare accounts between banks. You can compare APYs of different products to determine which one offers the best outcome for you (but note that the APY does not compare early withdrawal penalties where those penalties apply). Also make sure that you understand all restrictions associated with the account.

In addition to saving money for short term goals, setting money aside on a regular basis into any type of account and watching the savings accumulate can give you a real sense of financial empowerment. No matter what amount or account type, the earlier you start saving the better.

In reference to: FDIC. gov.

Risley can be contacted at 918-775-4838 or janis.risley@okstate. edu.

Roland FFA presents check to City of Roland
Main, news
Roland FFA presents check to City of Roland
July 1, 2025
The Roland FFA presented a $1,500 check to the City of Roland, which was a matching grant from the Oklahoma Rural Rehabilitation Corporation in Stillwater. The grant was for purchasing and installing ...
Authorities seize 656 pounds of marijuana
Main, news
Authorities seize 656 pounds of marijuana
From illegal grow operation in western Sequoyah County
By AMIE CATO-REMER EDITOR 
July 1, 2025
A routine property visit led to the discovery of an illegal marijuana grow operation in the Marble City/Dwight Mission area last week, resulting in the seizure of over 650 pounds of processed marijuan...
Johnson: Inspiring others toward a creative path
Main, news
Johnson: Inspiring others toward a creative path
By JADE PHILLIPS COURTESY 
July 1, 2025
Heith Johnson, 52, is a familiar face at the Sallisaw Farmers Market, where his vibrant artwork captures the attention of passersby. A lifelong resident of Sequoyah County, Johnson grew up in Muldrow ...
Brignac is National runner-up
Main, news
Brignac is National runner-up
July 1, 2025
2025 Muldrow High School graduate Mason Brignac ended his Speech and Debate Career as a National runner-up in Prose Reading at the NSDA National Tournament in Des Moines, Iowa. This is an all-time bes...
Carl Ray Grussendorf
Obituaries
Carl Ray Grussendorf
July 1, 2025
March 9, 1971 – June 1, 2025 Memorial services for Carl Ray Grussendorf, 54, of Sallisaw, were held at 10 a.m. on Saturday, June 28, 2025, at Mitchell Cemetery in Gans. Cremation is under the directio...
Laraine Hood
Obituaries
Laraine Hood
July 1, 2025
May 6, 1957 – June 23, 2025 Funeral services for Laraine Hood, 68, of Sallisaw, were held at 10 a.m. Thursday, June 26, 2025, at United Faith Church in Sallisaw. Burial was at Pope Chapel Cemetery in ...
ePaper
google_play
app_store
Editor Picks
Ronny Wayne Drain
Obituaries
Ronny Wayne Drain
July 1, 2025
Sept. 16, 1947 – June 18, 2025 Ronny Wayne Drain Sept. 16, 1947 – June 18, 2025 Funeral service for Ronny Wayne Drain, 77, of Ozark, Ark., were held at 11 a.m., Friday, June 27, 2025, at Shaffer Funer...
William Leroy Crawford Sr.
Obituaries
William Leroy Crawford Sr.
July 1, 2025
Nov. 30, 1955 – June 17, 2025 William Leroy Crawford Sr., 69, of Sallisaw, died on Tuesday, June 17, 2025, in Sallisaw. He was born on Nov. 30, 1955, in Bengal to Edward Leroy Crawford and Ethel (Wood...
Darrell Franklin Hall
Obituaries
Darrell Franklin Hall
July 1, 2025
Sept. 16, 1954 – June 23, 2025 Darrell Franklin Hall, 70, of Sallisaw, died on Monday, June 23, 2025, in Fort Smith, Ark. He was born on Sept. 16, 1954, in Phoenix to Harrison Valentine Hall and Darle...
Ethel Mae Curry McClure
Obituaries
Ethel Mae Curry McClure
July 1, 2025
Nov. 6, 1940 – June 23, 2025 Funeral services for Ethel Mae Curry Mc-Clure, 84, of Sallisaw, were held at 10 a.m. Friday, June 27, 2025, at Agent Mallory Martin Chapel in Sallisaw. Burial followed at ...
Crystal Lea Price
Obituaries
Crystal Lea Price
July 1, 2025
July 24, 1977 – June 15, 2025 Crystal Lea Price, 47, of Muldrow, died on Sunday, June 15, 2025. She was born on July 24, 1977, in Fort Smith, Ark., to James Harmon and Karen Irene (Snyder) Harmon. No ...
Facebook
Twitter
Tweets
Twitter
Tweets

EASTERN TIMES-REGISTER
603 W. Schley
Vian, OK
74962

(918) 427-3636

This site complies with ADA requirements

© 2023 Eastern Times-Register

  • Contact
  • Privacy
  • Accessibility Policy