Buzz
Rewards are an excellent way to keep yourself motivated as you work towards any goal. For savings goals, financial rewards can be particularly motivating. Some banks even provide these rewards, offering cash incentives when you achieve your savings targets.
Bargaineering, a popular financial site, shares that goal-based savings accounts offer rewards for achieving specific targets. For instance, you could earn a $100 bonus once your account reaches a certain balance. Alternatively, regular deposits might unlock a higher APY.
They also describe how some of these accounts function:
Each account has its own set of rules, so it’s important to thoroughly research one that catches your interest to fully understand how it operates.
Some accounts require you to set up automatic transfers from your checking account at the same financial institution.
Certain accounts impose a minimum deposit requirement each month or may limit the maximum amount you can deposit.
Some accounts prevent withdrawals for an entire year, ensuring that you can't access those funds during that time.
Others restrict the number of withdrawals allowed, or may charge a fee for each withdrawal made.
These types of accounts are often offered by banks or credit unions online. Bargaineering provides a detailed list of these options in their full article. Be sure to read the terms and conditions to check for any maintenance or penalty fees that may apply to each account.
Image courtesy of 401(K) 2012.
