Diversify Savings with a Savings Portfolio

A diverse savings portfolio can be the key to higher returns and more secure savings

You've probably heard the old adage, 'Don't put all your eggs in one basket.' Well, when it comes to investing, this colloquialism is key to your saving success. A diverse savings portfolio allows your different investments to grow at varied rates, creating a cushion against market shifts.

Savings options like stocks, bonds, and even money market mutual funds are more volatile investments since they fluctuate with the market. However, CDs and money market accounts are FDIC-insured and offer higher interest rates than your typical savings account options. Add money markets to your portfolio for a safer way to grow your savings.

Consider why you're saving and how long you plan to save

The structure of your savings portfolio depends on what you're saving for and how much time you have to save. If you're saving for an emergency fund or family vacation, you'll want an account that will earn money while providing easy access to funds. If this is the case, consider a money market account or portfolio structure.

A money market portfolio is a group of investments in money market accounts and money market mutual funds.Since money market accounts are FDIC-insured and money market funds are generally very diverse, this is one of the safest short-term investment opportunities available to the general public. Speak to a Citizens Bank investment representative for more information about money market portfolios.

However, if you're saving for retirement or college, you could supplement your 401(k) and IRA with certificates of deposit, or CDs.Since CDs restrict access to your money until the period of the CD is up they are a better choice for long-term rather than short-term savings. Before you decide to invest in either option, make sure you have at least $1,000 in your savings account you can afford to transfer into a money market account or CD and not touch. Even though you have more access to a money market account, you want to leave as much money in the account as possible to accumulate interest.

Diversify savings with relationship banking and savings plans

If you already have a checking and savings account, consider the benefits of relationship banking accounts. Relationship banking allows you to easily transfer funds between accounts online, provides preferred interest rates and waives fees when you achieve a set combined monthly balance. Put your money to work in checking, basic savings and money market savings accounts.

Once you set up relationship banking accounts, incorporate a savings plan to make savings diversification simple. With savings programs, you can set goals, track progress and earn rewards when you reach your goal. You can also set up a savings plan to directly deposit or transfer funds to a money market account monthly, thereby allowing you to save without even thinking about it. Consider using specialized savings plans to set aside money for college or a new home.

Invest in money market accounts and certificates of deposit for savings diversification

Money market accounts allow for higher interest and easier access than CDs. However, because you can't touch the funds during the CD term, CDs have even greater interest rates to allow for greater earnings. Diversify your savings with a combination of CDs and money markets in your portfolio. Multiple money market accounts with varying interest rates, minimum balance requirements and multiple CDs can become available at different times, which will allow you to create a more secure portfolio.

Be aware that most money market accounts have minimum initial deposit requirements as well as minimum balance requirements that you will need to maintain. Certificates of deposit have a minimum balance required to open, but they don't have monthly maintenance fees. If you have enough liquid savings, a CD could be a cost-effective addition to your savings portfolio.

Add a money market account to your Citizens Bank savings portfolio

Diversify your savings plan by adding a money market account from Citizens Bank. Money market accounts are one of the most secure options to grow your investments. You may also want to consider investing in CDs, stocks, bonds and money market mutual funds to increase your savings diversification. For more information about adding a money market account to your portfolio, speak to a Citizens Bank representative at 1-877-360-2472 or apply for a money market account online today.

 

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