Savings is a beneficial financial resource that offers much-needed assistance on a rainy day. Regardless of your age, be it your 20s or your 60s, it’s essential to have a savings account that will have your back during a financial crisis or an emergency. Only after you start building a foundation will you learn techniques to maximize and optimally use your savings. To help you secure your future here are some tips for optimizing a savings account.

• Keep aside money for yourself first

When your paycheck is credited, pay yourself first. Dedicate an amount to your savings account every month before you make any other expenditure. To ensure that you do not miss, You can set an automated transfer from your salary account to your savings account at the start of every month. This is far better than waiting until the end of the month after you’ve spent most of your salary. The more you add to a savings account without using it, the more interest you will earn.

• Emergency fund

Access to immediate cash in addition to a savings account can come handy in an emergency situation. No matter how distant or unexpected an emergency may seem, having immediate access to cash on a rainy-day will be very useful, especially in a time-sensitive matter. Moreover, apart from adding money to your emergency fund, ensure that you do not make unnecessary purchases using money from this fund.

• Saving strategies change with age

With age, priorities change and so should your saving strategy. In your 20s and 30s, you should focus on paying your debts, and in your 40s and 50s, you should build an extra source of income and look at long-term saving plans. Your 60s and 70s should be about budgeting pension and social security money. The dynamics of your age play a key role in strategizing your savings account. Therefore, in addition to opening a savings account, ensure that you review your earnings, investments, and savings to leverage opportunities of multiplying your wealth.

• Invest in accounts that earn you more interest

Everyone of course starts with building a savings account with small goals such as your first $1000 to make it easily achievable. But as years pass and the liabilities add, it’s recommended to look at money market accounts that earn you more than standard savings accounts. You can hire a financial professional that will help you understand the risks involved, terms and conditions, and the necessary lock-in period.

• Time Deposit (TD) account

A TD account maximizes your savings account much faster than any standard savings method. This interest-bearing account compounds interest over time on the lump sum principal amount. Additionally, it has a fixed date of maturity, which means you can invest with a precise financial goal in mind.