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Tips for Building Emergency Savings Options from Bank of America Find information on building emergency and long-term savings plans from Bank of America. Stay ahead of unexpected expenses with these tips. Treating savings as an expense

We all want to build our savings, but knowing how much to save, when to save it and what sort of account to save it in can get a little complicated. The best approach is to treat savings like any other recurring expense, something you pay regularly like your rent or your car loan. One easy way to make that happen is to set up automatic transfers from your checking account into a few different types of savings solutions to best meet your short- and long-term savings needs.

The emergency savings fund?an easily accessed short-term cushion You should generally have $500-$1,000 in a savings account as a safety net for unexpected but necessary expenses like a car repair or family emergency. If putting all this away at once seems like tough, set up monthly automatic transfers from your checking account into an easy-to-access savings account. Deposit $50 each month for one year?that?s less than 2 bucks a day?and you?ll have $600. The short-term emergency fund?a safety net Many experts recommend you keep 6 months of living expenses in a separate savings account to protect your family in case of a medical emergency or job loss. To get started, deposit a fixed amount, such as $100, from your paycheck to a savings account via direct deposit. Or simply transfer the money from your checking account into a regular savings account or money market savings account after each pay period. You want your emergency savings to be accessible quickly in an emergency, but not so accessible that you?ll borrow from it for everyday expenses. It helps to keep this account separate from other savings, and to think of it not as a cushion or investment, but as a break-glass-in-event-of-emergency fund. Long-term savings options?investing in your future These accounts are for big goals down the road, such as your retirement or your children?s college education. Those goals may seem far off, but the earlier you start saving, the more time you will have for your money to gain interest. ? Retirement: Once again, it?s best to save automatically. You can either deposit to a bank IRA or, if your employer offers a 401(k), you can usually arrange to have automatic deductions made from your pre-tax pay and directly deposited into the plan . There are lots of great ways to start investing in retirement no matter where you are in life, so don?t wait. ? College: For many parents, sending their children to college is one of the most important lifetime goals. Use the cost projector at FinAid.org to estimate how much your child will need, then look into college savings plans that allow you to have automatic deposits deducted from your checking account.

How to transfer funds automatically? and easily Whether your goal is to build up short-term or long-term savings, an automatic savings transfer can make it easier to get started. You determine the amount to be transferred and how often you want the transfer to take place?even the exact day of the transfer. Because you're in control, you can make adjustments to your transfers or stop them whenever you like. The good news: Your money adds up. Transfer just $15 per week, and in only 5 years you?ll have $3,900?and that?s before any interest is added. If you?re a Bank of America customer, you can set up your automatic savings transfer in 4 easy steps: 1. Sign in to Online Banking and select the Transfers tab 2. In the dropdown menus, select From your checking account and To your savings account 3. Enter the Amount you want to transfer and select a Frequency 4. Choose the Duration you'd prefer and click Schedule Transfer Get started setting up an automatic savings transfer. If you'd prefer, you can set up an automatic savings transfer by calling customer service or in person at a banking center near you. Find a banking center. Don't have a checking account? Sign up for a checking account now.

Bank of America emergency savings, long-term savings, long-term savings options
Tips for Building Emergency Savings Options from Bank of America Find information on building emergency and long-term savings plans from Bank of America. Stay ahead of unexpected expenses with these tips. emergency savings, long-term savings, long-term savings options

Treating savings as an expense

Man contributing to his emergency savings account on his computer

How to build your short- and long-term savings with automatic deposits.

We all want to build our savings, but knowing how much to save, when to save it and what sort of account to save it in can get a little complicated. The best approach is to treat savings like any other recurring expense, something you pay regularly like your rent or your car loan. One easy way to make that happen is to set up automatic transfers from your checking account into a few different types of savings solutions to best meet your short- and long-term savings needs.

Set up automatic deposits into your short- and long-term savings accounts to help ensure that you meet your financial goals.

The emergency savings fund—an easily accessed short-term cushion

You should generally have $500-$1,000 in a savings account as a safety net for unexpected but necessary expenses like a car repair or family emergency. If putting all this away at once seems like tough, set up monthly automatic transfers from your checking account into an easy-to-access savings account. Deposit $50 each month for one year—that's less than 2 bucks a day—and you'll have $600.

The short-term emergency fund—a safety net

Many experts recommend you keep 6 months of living expenses in a separate savings account to protect your family in case of a medical emergency or job loss. To get started, deposit a fixed amount, such as $100, from your paycheck to a savings account via direct deposit. Or simply transfer the money from your checking account into a regular savings account or money market savings account after each pay period. You want your emergency savings to be accessible quickly in an emergency, but not so accessible that you'll borrow from it for everyday expenses. It helps to keep this account separate from other savings, and to think of it not as a cushion or investment, but as a break-glass-in-event-of-emergency fund.

Long-term savings—preparing for your future

These accounts are for big goals down the road, such as your retirement or your children's college education. Those goals may seem far off, but the earlier you start, the more time you will have for your money to grow.

  • Retirement: Once again, it's best to save automatically. You can deposit to a bank IRA or, if your employer offers a 401(k), you can usually arrange to have automatic deductions made from your pre-tax pay and directly deposited into the plan. There are lots of great ways to start investing in retirement no matter where you are in life, so don't wait.
  • College: For many parents, sending their children to college is one of the most important lifetime goals. Use the cost projector at FinAid.org to estimate how much your child will need, then look into college savings plans that allow you to have automatic deposits deducted from your checking account.

How to transfer funds automatically— and easily

Whether your goal is to build up short-term or long-term savings, an automatic savings transfer can make it easier to get started. You determine the amount to be transferred and how often you want the transfer to take place—even the exact day of the transfer. Because you're in control, you can make adjustments to your transfers or stop them whenever you like. The good news: Your money adds up. Transfer just $15 per week, and in only 5 years you'll have $3,900—and that's before any interest is added.

If you're a Bank of America customer, you can set up your automatic savings transfer in 4 easy steps:

  1. Sign in to Online Banking and select the Transfers tab
  2. In the dropdown menus, select From your checking account and To your savings account
  3. Enter the Amount you want to transfer and select a Frequency
  4. Choose the Duration you'd prefer and click Schedule Transfer

Get started setting up an automatic savings transfer.

If you'd prefer, you can set up an automatic savings transfer by calling customer service or in person at a banking center near you. Find a banking center.

Don't have a checking account? Sign up for a checking account now.