If you have been struggling to save up as much as you promised yourself your would, you are not alone. For over four out of ten Americans, saving enough money to cover a monetary fallback or an unexpected expense seems to be a significant challenge.
And, even those who were on track to bulk up their savings in 2019 were set back by the pandemic-induced economic crisis, always-rising cost of living, and inflation. Luckily, technology is, once again, coming to the rescue.
In particular, there are some modern bank account features that make saving easier – here are the ones you shouldn’t miss out on!
Setting Up Several Sub-Saving-Accounts For Your Expenses
Over the past 20 years, the typical middle-class lifestyle in the US became up to 30% more expensive, while salaries have not followed suit.
This has made it all the more difficult for families to add money to their savings accounts at the end of the month – so much so that, today, first-time homebuyers take a record 7 years and 11 months to save up for a 20% deposit!
But the right bank account – coupled with a tailored mobile banking app – can help you save for your life goals and rewards. No matter whether you are looking to buy the latest iPhone or building your savings to cover at least six months’ worth of expenses, the right app will automatically move a percentage of your paycheck towards a certain sub-account for savings.
Saving the ‘Change’ from Transactions
New mobile banking features, often called “round-ups” or “save the change” features, will automatically round up the cost of your purchases to the nearest dollar. The difference between the price you have paid and the “rounded” price will be redirected automatically to your savings account.
Here’s an example of this feature and its benefits.
When buying a coffee, you’ll spend $2.60. With the right bank account, the price of the purchase will be rounded up to $3, and the difference – in this case $0.40 – will be directed to your chosen account. While $0.40 might seem an unnoticeable amount at first, when invested in the right account, such as a SoFi high yield savings account, can offer significant returns!
Automatic Transfers Between Your Transaction Account and Your Savings Account
Having more than one bank account is extremely common in the US, no matter whether it is done for security reasons or convenience. But mindlessly moving money between accounts, or not checking the balance or your transactions account can cause you to spend much more than you had originally intended to.
Modern bank accounts can effortlessly prevent this by automatically transferring a percentage of your paycheck monthly income into your savings account. In this way, you won’t have to worry about overspending or cutting into your hard-earned savings.
Avoiding Penalties With Automatic Bill Paying Features
Recent polls have shown that over 42% of bank card owners have missed at least one payment. And, while lack of funds is one of the main reasons for neglecting a bill, up to 60% of people end up missing payments simply because they forget about transferring funds!
While paying some bills a few days after they are due might not cause you to face any penalties, some credit card balances and monthly repayments can lead to fees and charges – which can eat into your savings!
A Bank Account That Aligns With Your Budgeting Strategy
Using budgeting apps has its pros and cons – especially if they are external to your account and linked to your bank card. Indeed, these apps can help you visualize your spending, but they might not always be accurate or safe.
Choosing your bank account wisely gives you access to a wide range of budgeting features integrated into the bank’s proprietary mobile app. So, you can review accurate reports, seamlessly move money, customize your spending goals, and keep your finances secure at all times.
Struggling to find motivation? Get your reports and check how much you have been able to save each month!