How to Save Money for Short-Term and Long-Term Savings Goals
One challenge that people run across when trying to save money each month is understanding the difference between short-term and long-term savings and using the right financial product for their specific savings goal. Short-term saving is great for things in your near future like a new car or preparing for your next vacation; a savings goal of one year or less. Long-term savings is best used for things like buying a house or planning for your retirement; a savings goal greater than one year.
One of the easiest ways to save money on a tight budget for any short or long-term savings goals you might have is by opening a new savings account specifically for the goal you are aiming to achieve. Once you have that savings account, it can be tricky to make sure you put enough aside to achieve your savings goals. But, by utilizing direct deposit, you can set aside a small portion of each paycheck into your savings account and take the hassle of budgeting out of the equation.
If you’re looking to save up for larger purchases, such as a house, you may want to look at a Santander Money Market Savings account. By opening a money market savings account and maintaining certain balances, you will enjoy the benefits of our highly competitive interest rates and be well on your way to achieving your long-term savings goals.
Another way to achieve your savings goals is with a Santander Certificate of Deposit (CD). CDs tend to be offered in a variety of terms, making them an attractive option for either a short-term or long-term savings goal. You choose the amount you want to save and for how long, and Santander will take care of the rest. Once your CD matures, you not only will have saved the original amount for the desired period, but you will also collect the interest.
Also, by utilizing the Santander Mobile Banking App, you can quickly and easily transfer money from your checking account to savings account as often as you like, making it easier to follow a weekly savings plan or transfer extra cash, like a bonus, to savings. You also have the option to set up recurring transfers, which automatically transfers money from your checking account to your savings account.
While a little self-control and careful budgeting goes a long way, it can still be hard to be sure you have enough for those long-term savings goals. By using all the great banking tools we offer, you have access to everything you need to take the stress out of planning your financial future. Contact a Customer Service Center Advisor today to start a conversation about saving for your goals at 877-768-2265 from 6 a.m. to 10 p.m. ET, seven days a week. Please note that this information is intended for Santander customers in the United States; different rules and regulations apply to our customers outside of the United States.
Santander Bank does not provide financial, tax or legal advice and the information contained in this article does not constitute tax, legal or financial advice. Santander Bank does not make any claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in this article. Readers should consult their own attorneys or other tax advisors regarding any financial strategies mentioned in this article. These materials are for informational purposes only and do not necessarily reflect the views or endorsement of Santander Bank.