Whether you’re saving up for a vacation or just trying to squirrel away some cash for an emergency, having an emergency fund is crucial. You never know when you might need it—a broken car, a sudden illness or an unexpected bill—so be sure to set that money aside in emergencies. Read below to know where you can use your best high-yield savings account 2022:
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For an emergency
You should always have money available in case of an emergency. It’s great to have a separate savings account to keep that money just in case you need it someday. If you put the savings away, then you won’t be tempted to spend it on other things and will still have some money if your car breaks down, or something else happens unexpectedly.
“Savings account keeps your money in reserve for when you need it,” as per Lantern and SoFi professionals.
To make a down payment on a car or home
You have the dream of buying a car or home shortly, but you still need to save money. You can use a savings account as a down payment for these purchases. However, they only recommend using this method if you purchase an expensive item like a car or home with an emergency fund first.
To start your own business
To start your own business, you need money. You also need a savings account that will keep the money safe and let you save for the future of your business. When starting a savings account, there are many different options but choose the one which is easy to use and has excellent customer service.
To invest in the stock market
A savings account is a good choice if you’re looking to invest in the stock market. You’ll need first to make sure that you have enough money saved up for an emergency fund—enough to cover three months of expenses—but if you do, investing in the stock market can be a great long-term investment.
To purchase expensive electronics like a computer, laptop and cell phone
You must have cash in hand if you need to buy expensive electronics that can only be purchased in person, like a computer, laptop or cell phone. You should not use your savings account to do so. If there is no ATM where you are going, and the store does accept credit cards but not debit cards, then this would be an excellent time for you personally and financially to have some money saved up in your savings account. It is best if this money is saved for a specific purpose, such as for an emergency or important purchase like electronics.
When traveling overseas and need to have cash on hand (especially if there is no ATM where you’re going)
You may be wondering why you’d need a savings account if you have a credit card. But let’s face it; cash is still king. Some places don’t accept American credit cards and will only take cash (or they charge some hefty ATM fees). So if you have an amount of money that can be withdrawn from an ATM or in cash form, then have your funds on hand for when traveling overseas and need to have cash on hand (especially if there is no ATM where you’re going).
Saving your money is one of the best things you can do for yourself. It will help you pay for emergencies, reach important goals and make smart investments.