Why Do You Need an Emergency Fund?
- Job loss or unemployment
- Medical or dental bills
- Home repairs
Have you ever wondered why financial planners say employer-sponsored plans and Individual Retirement Accounts (IRAs) — such as Discover’s IRA Certificates of Deposit (CDs) — should be the first priority for people saving for retirement? Let’s look at the key reasons why:
Individual Retirement Accounts are also on top of any planner’s priority list. Like employer-sponsored plans, Traditional IRAs allow account earnings to compound on a tax-deferred basis.
You may also consider supplementing your tax-deferred retirement assets with additional non-tax-deferred savings accounts. With that in mind, consider the benefits of a Discover Money Market Account, which gives you the best of both worlds: high yields with flexible access to your savings2. After all, the more you set aside today, the better your financial future is likely to be.
In addition to offering IRA CDs and Money Market Accounts, Discover also offers an Online Savings Account to help you with your short-term savings goals and a full range of CDs to help you save for the future. It is easy to open an account online or call our 24-hour U.S.-based Customer Service at 1-800-347-7000.
The article and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.
1Withdrawals are subject to ordinary income tax. Withdrawals made prior to age 59½ may be subject to a 10% federal penalty.
2Federal law limits the number of certain types of withdrawals and transfers from a Money Market Account to a combined total of six per calendar month per account. There is no limit on the number of withdrawals by ATM or by Official Check mailed to you. If you exceed these transaction limitations during any calendar month we may assess an Excessive Withdrawal Fee or refuse to pay each transaction in excess of the limitations. If you exceed these limits on more than an occasional basis, we reserve the right to close your account.
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1 Study by T. Rowe Price Retirement Plan Services.