What are people saving for now?
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In the midst of an ongoing global pandemic, it’s no surprise that more and more Americans are investing the extra money they have to build an emergency fund or save for possible future medical bills.
Yet in the spirit of the holiday season and with hopes of a better year in 2021, consumers are also setting savings goals for things like Christmas and weddings, Ally Bank data shows. .
To see what consumers are saving for these days, CNBC Select asked Ally Bank to provide an overview of how their customers are using their Ally online savings account (one of our savings accounts at highest rated high yield). One of Ally’s smart savings tools, called “buckets,” act like digital envelopes in a person’s savings account. They allow users to categorize their savings goals, whether it’s a special event or a big purchase.
Being able to visualize and personalize a specific savings goal creates an emotional attachment to help you save, which can be a powerful motivator.
According to Ally Bank, here are the top 10 bucket nicknames people are creating and saving right now:
- Emergency funds (6 out of 10 customers who have compartments have an “emergency fund” compartment)
- Car insurance
Apart from these 10 goals above, Ally Bank also notes that they have seen unique compartment names appear this year, some of which reflect the current state of people in quarantine. These include names like “furry baby”, “nursing school”, “treadmill” and “my own apartment”.
“What’s interesting about Covid is how these compartments are influenced by both micro and macro elements,” Emily Shallal, senior director of customer strategy and innovation at Ally, told CNBC Select. Bank. She emphasizes that savers think about what is happening within their own four walls but also within the economy at large.
“It’s been interesting to see trends appear as people keep track of what’s going on around them,” Shallal said, indicating that in December Christmas was at the top. When the federal government announced the postponement of student loans, she says she saw a significant number of people start to create savings compartments for future student loan payments.
If you have some extra money to spend on your savings goals right now, it can definitely help you get organized. Ally Bank ‘buckets’ are a good way to do this, or you may want to consider opening a second or third savings account at your current bank.
Just make sure you know the fees in advance. Ideally, no matter which savings account you use, you will reach your goals faster and at no additional cost.
Learn more with the CNBC Select exam on the Ally Online Savings Account: Here is the best high yield savings account to do all your banking in one place
Ally Bank Online Savings Account
Annual percentage return (APY)
The minimum balance
No monthly maintenance fees
Maximum number of transactions
Up to 6 free withdrawals or transfers per statement cycle * The withdrawal limit of 6 survey cycles is removed during the coronavirus outbreak under Regulation D
Excessive transaction fees
Offer a checking account?
Offer an ATM card?
Yes, if you have an Ally checking account
Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.