Saving money is an essential part of financial planning, but simply putting money aside in a single account may not be enough. Different savings goals require different types of accounts, and having multiple accounts can help you optimize your savings strategy. Here are five types of savings accounts you should have to meet your financial goals.

Emergency Fund Savings Account

An emergency fund is the money you set aside to cover unexpected expenses, such as a medical emergency, car repair, or job loss. This type of savings account should be easily accessible and provide a higher interest rate than a regular savings account.

Consider an online savings account or a money market account for your emergency fund. Online savings accounts generally offer higher interest rates than traditional savings accounts, while money market accounts offer both higher-interest rates and check-writing privileges.

Short-Term Savings Account

A short-term savings account is for saving money that you will need soon, such as for a wedding or vacation. This type of account should be separate from your emergency fund and offer easy access to your money. At First Financial, we offer a summer savings account* for members to save money if they don’t receive income during the summer months, or for a future summer vacation. We also have a holiday club account* in order to save money throughout the year come end of year holiday expenses.

Long-Term Savings Account

A long-term savings account is for saving money that you will not need for several years, such as for retirement or a child’s education. This type of account should offer higher interest rates and be invested in growth-oriented investments.

Consider a retirement account, such as a 401(k) or IRA, for your long-term savings. These accounts offer tax advantages and are specifically designed for retirement savings. If you’re saving for a child’s education, consider a 529 college savings plan.

Goal-Specific Savings Account

A goal-specific savings account is for saving money for a specific goal, such as a new car or a home renovation. This type of account should offer higher interest rates and be separate from your other savings accounts.

Consider a certificate of deposit (CD) for your goal-specific savings. CDs offer fixed interest rates and are FDIC or NCUA-insured, but they generally require you to keep your money locked in for a set period.

Investment Savings Account

An investment savings account is for saving money you plan to invest in the stock market. This type of account should offer easy access to your money and lower fees. You’ll want to consider a brokerage account for your investment savings. Brokerage accounts allow you to buy and sell stocks, bonds, and other investments, and they offer a variety of options.

Having multiple savings accounts can help you optimize your savings strategy and meet your financial goals. We offer a variety of personal savings account options at First Financial for every type of purpose or situation. Getting started is easy — call member services at 732.312.1500 or visit one of our branches!

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*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.