Bank & Financial Blog

With all of the stories in the news about how banks are getting back on their feet by looking for ways to make money, it’s easy to forget that their primary purpose is to help you save money. The more people who open a savings account at a bank, the more potential money the bank has to invest. And while the interest you earn on your savings account is hardly what a bank may earn from investing, there are many ways for your bank to help you make money while you save. Here are three of the most popular.

The first method is the simple savings account. It’s always good to have some money put aside in case of a sudden emergency, job loss or other mishap. If you have direct deposit, you can arrange for some of your paycheck to be deposited into your savings account every payday.

If you have a bit of money and you’re looking to grow it — say from an inheritance or insurance settlement, a certificate of deposit could be an excellent choice. With CDs, you determine how long you wish to put the money into the bank. This can be anywhere from six months to several years. If you leave the investment in the bank for the agreed-upon period, the bank pays you an agreed-upon interest rate on your deposit.

A third way to make money through your bank involves risk, but it can prove to be a big winner for you over time. Talk to the institution’s financial adviser about available mutual funds and other investment opportunities. While the adage is true that it takes money to make money, you can actually start investing for very little cash and continue to add more as time goes by. Because you’re investing through your bank, you can handle all of your financial concerns without having to call a variety of people in order to do it.

These are just three ways a bank can help you make money. There are many more. Which way works best for you can only be determined by sitting down with your financial adviser and talking about it. From a savings account to a full portfolio, your bank can help you today.tt