Times are tough for the unemployed, and even those who are holding down jobs are finding this current era a struggle. During this time many are re-evaluating their savings habits, cutting back on their wants and figuring out what their needs really are. Unemployment has reached 10% in some areas, and companies are either putting a hold on hiring or decreasing the percentage of annual raises.

Point blank, things we need are becoming expensive and our pay checks are dwindling. It’s important that we put a few dollars away for rainy days into a savings account.

Whether you have unexpected expenses, or  big events such as college, a move, starting a business, or sadly a job loss you want to have some financial insurance. The bottom line is one should put a percentage of their pay check into some type of savings account.

The savings accounts available are:
• Basic Savings account- no minimum required balances or deposit amount and money can be withdrawn at any time, but the rate of return will be low.
• Money Market account- it has a higher return, but one needs to keep a specific amount of money in their account.
• Certificate Deposit (CD) account- access is denied until the certificate of deposit reaches maturity, or an amount of time specified when the CD was opened. Early withdrawals result in a heavy penalty charge.
• Individual Development (IDA) account-a special savings account held by a non-profit organization that allows lower-income families to save a certain amount of money, then matches that money at a 3:1 ratio. This account is designed to help low-income families reach financial goals such as a down payment for a house or money for college, or starting a business.

Do you need a place to start? Visit ING Direct at www.ingdirect.com to explore basic savings and even investment services. Start your research for Individual Development Accounts by visiting www.cfed.org.