AAA MountainWest Offers Strategies for Saving

Deposit accounts provide opportunities to save

Helena, Mont. 3/18/09 – With the United States economy struggling as it is, it’s more important than ever for Americans to protect their savings.  To help weather these tough economic times, AAA MountainWest Financial Services offers strategies for saving money.

One of the most important things Americans should do is to start saving as soon as possible.  The sooner you start putting money aside, the sooner that money starts earning interest.  An easy disciplined way to be sure you’re putting some money away every month is to take advantage of automatic deposits from each paycheck into a savings account.  It is also important to develop a plan and have specific goals laid out to help you stick to your deposit plan.

Funding an emergency reserve of cash, saving for a special vacation, paying for school tuition, setting money aside for a down payment on a home,  or buying a new vehicle are examples of goals for which a savings plan is appropriate. 

Keep in mind interest rates for different savings products can vary widely.  “One-third of cash-rich consumers report they never check the interest rate on their savings account,” said Denice Harris, AAA Spokeswoman.  “But what people may not realize is that by failing to do so they may be leaving money on the table.”  Harris suggests consumers research savings account interest rates and consider switching to a higher-yielding savings product, such as an FDIC-insured money market account if possible.

Use money refunds (rebates, income tax returns, etc.) to pad your savings rather than to fund splurges. Contribute to a retirement plan. If your employer does not offer a retirement plan, consider an IRA and be sure to review the beneficiaries you’ve named on such items as IRA’s and 401K’s.

When planning a well-diversified savings plan, consider purchasing an FDIC-insured certificate of deposit (CD).  Before you purchase a CD, make sure you understand when the CD matures, confirm the interest rate, how you’ll be paid and the penalties for early withdrawal of funds prior to the maturity date. 

Finally, if you have children, consider opening a savings account in his or her name.  It’s a good way to lay the foundation for a solid financial future.  Most providers will waive the minimum deposit and monthly fee on a minor’s savings account.

For more information about how AAA MountainWest can help grow your savings contact your club services office or log on to AAA.com/Deposits.

AAA MountainWest Club is dedicated to providing its over 160,000 members in Alaska, Montana and Wyoming with travel, insurance, financial and auto-related services.  A fully taxpaying, not-for-profit corporation, AAA MountainWest, Inc. works for the improvement of motoring and traveling conditions and is a leader for travel, civic and safety issues. AAA can be visited on the Internet at www.AAA.com.  To have up-to-date news and safety information from AAA delivered right to your desktop, sign-up for the new RSS Feed at http://aca.aaa.com/exts/email/?club=066#rss

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