The Right Savings Accounts for Creative Professionals

There are a wide variety of savings accounts out there, each with their own perks and benefits. Picking the right one can seem overwhelming, so let’s review how to pick a savings account that meets your unique situation and needs, whether you’ve got a long-term position or role, you’re picking up hours across a variety of jobs, or you’re just starting to make waves in the industry.

What is a savings account?

A savings account is a specific type of account designed to help you build your wealth by providing a return on the amount of money you have in your account in the form of interest. While they have some similarities to checking accounts, there are some notable differences.

For instance, most savings accounts place a limit on the number of withdrawals you can make per month. They also usually have a card you can use for ATM withdrawals, but not for point-of-sale purchases. Some savings accounts have a higher minimum required deposit to open in exchange for a higher rate of return.

These differences position savings accounts as strong vehicles for wealth-building. By keeping money deposited with your bank or credit union, you give it the chance to grow every month as you earn interest on your balance based on that particular account’s Annual Percentage Yield (APY). These accounts give you a safe (and insured) place to keep your money as you work toward a goal.

What should you look for in a savings account?

As a creative professional, your needs don’t fit in a traditional mold. Finding the right savings vehicle means first considering the type of account—or accounts—that you need, and looking for a bank or credit union that offers those accounts. Then, it’s time to deep-dive into the details of your account needs. Ask yourself:

• Is there a minimum opening deposit?
• Is there a minimum daily balance requirement?
• What are the deposit and withdrawal limitations?
• What is the APY, and is it guaranteed?
• How is the account accessible, e.g., online and mobile banking, check, debit or ATM card, branch locations, account transfers?
• Are there any potential fees or penalties?

By answering these questions, you’ll be able to easily compare accounts and find the one(s) that fit your unique needs.

What types of savings accounts are there?

There are a wide variety of savings accounts, each suitable for different aims. They include:

• Traditional savings: A standard savings account offered by most financial institutions, and a safe place to keep your funds while you earn steady (but relatively low) interest. These accounts are often used as a backup for your day-to-day spending.
• Money market: A special type of savings account that generally offers a higher rate of return than a traditional savings account, in exchange for a higher opening deposit requirement. Some money market accounts offer greater flexibility in withdrawals and deposits. Because of this flexibility, these accounts are great places to store emergency savings.
• Term Certificates: Also known as share certificates or certificate of deposit, this type of account involves an agreement to leave your funds in the account for a certain amount of time (a “term”) in exchange for a much higher APY. These terms can range from months to years and offer an excellent way to build wealth once you’ve established your daily and emergency savings.
• Specialty savings accounts: Depending on your needs, you may want an account that’s tailored for health, retirement, helping a child save, and more. Specialty savings accounts often offer special perks or capabilities that make them well suited to a specific savings need.

To open a savings account that’s been designed specifically for creative professionals, contact First Entertainment today. We can help you open accounts that match your needs and put you on the path to achieving your goals.