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According to an August 2024 MarketWatch survey, 66.2% of Americans reported feeling like they were living paycheck to paycheck, with almost half (48.6%) of respondents admitting that they felt broke.
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Due to soaring inflation over the last few years and average salaries not increasing accordingly, many are feeling financial pain in their bank accounts. This is why it’s more important than ever that consumers use all available resources to ensure they can reach their financial goals.
In an effort to help, GOBankingRates spoke with financial experts about the best ways to bank and achieve your goals. Here’s five lesser-known products and services from your bank that help you achieve long-term financial goals.
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Savings Buckets To Plan for Different Future Goals
As Ben McLaughlin, a personal finance expert and the president of Raisin, explained, “Some banks allow you to have different ‘buckets’ within a savings account, so it’s easier to keep track of how much you are saving for specific goals.
“This allows you to stay disciplined and organized while still earning interest. [And] it’s a much better (and safer) system than stuffing envelopes under your mattress.”
When your daily money management gets stressful, it’s essential that you zoom out and try to plan ahead for the future by setting funds aside for specific plans. With savings buckets, you get digital envelopes for setting aside money for different needs.
Here are a few examples of how you can use savings buckets and other relevant tools to reach your long-term goals:
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Recurring transfers. You can have your funds automatically transferred to your various long-term financial goals on a schedule that works for your situation.
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Surprise savings. Some savings accounts will review your spending to find categories where you could be saving funds. You can set it so that your bank account monitors your linked checking account actively and automatically transfers the savings.
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Round-ups. This feature, which comes with some savings accounts, rounds up your purchases in your connected checking account to the nearest dollar and then transfers the money to your savings.
Once you’ve set everything up, the goal is to fill your various savings buckets with minimal effort.
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Callable CDs For Higher Returns
Callable CDs, while lesser known than traditional Certificates of Deposit (CDs), typically offer a more attractive rate than traditional CDs.
“They offer a fixed interest rate for their entire term,” said McLaughlin. “However, there’s a period of time during which the financial institution has the right to ‘call’ (close) the CD prior to its maturity date.”
He continued, “Even if the CD is called, there’s no direct loss to your principal or the interest you have earned. And, as long as you stick to the federal guidelines for insurance, it’s a safe and guaranteed investment.”
Using Financial Technology To Provide Customized Solutions
Because banks are leveraging cutting-edge financial technology, Phill Rosen, the global CTO at MoneyLion said, “[they] are positioned to keep a better pulse on their customer needs and pain points through real-time data processing.”
You may not realize that your bank has been gathering insights into your spending and investments to provide customized solutions for your situation. You’ll want to review these insights to see how you can improve your daily spending and how you can better allocate your funds for the future.
Rosen added, “Using fintech capabilities in this manner allows banks to drive hyper-personalization at every consumer touchpoint and improve the customer experience through curated content and product offerings tailored to their individual financial needs.”
Educational Content That Makes Sense
One of the perks of some bank accounts is the educational videos and resources they offer. While you may have missed these in the past, it’s crucial that you take some time to review the tutorials and videos to see what sort of assistance you can receive.
“Having content that is fun, entertaining and educational through short-form videos will help engage people to learn and share in a way that actually appeals to them,” said Rosen.
User-Friendly Apps
Many banks today offer user-friendly apps that can simplify the money management process.
“Today’s digital consumers demand convenience and seamless experiences, preferring banking solutions that integrate effortlessly from one destination rather than requiring shopping from multiple destinations,” said Rosen.
He went on to say that emphasizing personalization and offering insightful content and resources will empower consumers to meet their long-term financial goals.
Finding The Right Tools To Grow Your Savings
When you’re working on creating a financial plan for your long-term goals, it’s critical that you find an account that offers the right tools when it comes to a checking and/or a savings account.
“A key component of long-term financial security is being able to cover unforeseen expenses without having to dip into your investments,” explained McLaughlin.
“Banks that offer high-yield savings accounts with competitive rates (and minimum fees/fine print) are helping their customers get on the road to financial success by offering a safe place to grow their nest egg.”
According to Rosen, “Banks’ primary focus will continue to shift towards leveraging fintech to better understand their customers’ unique financial situations. This will allow them to deliver highly tailored and personalized solutions precisely when and where consumers need them, aligning with each stage of their financial journey.”
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This article originally appeared on GOBankingRates.com: 5 Lesser-Known Ways Your Bank Can Help You Achieve Long-Term Financial Goals