Maintaining a savings account and actively saving money can be extraordinarily beneficial. It allows you to gain a return through the accumulation of interest and there is no risk associated with it, as opposed to an investment in a stock or business. Unfortunately, when you encounter a downturn in your own personal financial circumstance, it can be impossible to keep up with a savings commitment that you have made to yourself while you also pay for basic necessities and repay your creditors.
The Different Types of Savings Accounts
Different people have different intentions for their savings accounts. Some may be setting the cash aside for emergencies while others may be setting it aside for large purchases.
The type of savings account is typically defined by the minimum amount of money required to be deposited into the account. Different types of savings accounts and accounts opened at different institutions are likely to have different interest rates. The following are some kinds of savings account:
- Personal savings accounts will have a low minimum requirement and also typically a low interest rate.
- Money market savings accounts have slightly higher minimums and interest rates. They also allow an account holder to draw some checks from the account in the case of an emergency.
- Certificate of Deposit savings, more commonly known as “CDs,” are high interest savings accounts where the money must be kept in the account for a certain amount of time, with penalties for early withdrawal.
If you are struggling to keep pace with your financial obligations and are being forced to spend the money that you have worked so hard to save, filing for bankruptcy might offer some relief. Contact the Milwaukee bankruptcy attorneys at the DeLadurantey Law Office at 414-377-0518 to schedule a free consultation.