Why Do You Need an Emergency Fund?
- Job loss or unemployment
- Medical or dental bills
- Home repairs
Pursuing short-term financial goals–those that you’d like to achieve within one to five years, such as a down payment on a home or car–can require a different strategy than pursuing long-term goals. At Discover Bank, you’ll find a wide range of accounts designed to help you reach those goals, including Discover Certificates of Deposit (CDs), Money Market Accounts, and Online Savings Accounts.
Regardless of which Discover account you choose, the following simple steps will help you save for your short-term goals.
Discover Money Market Accounts provide ready access by ATM, check or debit card1, yet offer competitive interest rates. These accounts work best for those who need to tap into their funds on an ongoing basis.
Discover Online Savings Accounts also offers high liquidity, but may be more appropriate for one-time goals – such as a down payment on a house. There is no minimum deposit to open a Discover Online Savings Account.
Discover CDs are interest-bearing deposit accounts with a wide range of maturities. In exchange for purchasing a certificate of deposit, you receive the return of principal plus interest at the maturity date, making Discover CDs an ideal vehicle if you want to set aside a fixed sum today for a goal with a specific investment horizon.
Of course, not all short-term savings goals involve setting aside money for a significant planned expense. You should also consider the benefits of saving money for unexpected expenses in an emergencies-only account. At Discover, you’ll find the CDs, Money Market Accounts, and Online Savings Accounts you need for your entire range of financial priorities, and all of your deposits are FDIC-insured to the maximum allowed by law.
Finally, remember that short-term financial objectives should not take away from saving for long-term goals.
Open a Discover Bank account online in minutes or call our U.S-based 24-hour 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.
1Federal 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.
If you're looking for a secure way to grow your money, a CD could be right for you.Read Article
It all starts with a plan. Get tips to budget, save and achieve your goals.Read Article
Thoughtful spending (and saving) is the best way to get the most benefit from your bonus.Read Article
Get the whole family in a savings mindset with these tips.Read Article
Because life isn’t a home renovation TV show, here are some projects better left to the pros.Read Article
1 Study by T. Rowe Price Retirement Plan Services.