Preparing for emergencies is on the minds of a lot of Portlanders. We recently partnered with Simple to learn about the concerns our readers have when it comes to being financially prepared for an emergency. Whether you're worried about The Big One, or you're just wanting to make sure you've got enough cash to cover a surprise root canal (worst surprise ever…), saving money for an emergency is a smart thing to do.
In our WW Instagram poll, readers told us that they are only somewhat confident in being financially prepared for an emergency, and they don't expect that the average American is in much better shape than they are. Readers are worried about emergency vet or medical bills, car repairs, and not surprisingly, The Big One. While 48% of the responders said they are currently putting money aside for an emergency, the majority of those polled are not.
The unknown nature of a potential future emergency can be stressful enough, which is why setting up an emergency fund can create some sense of security. And with Simple, the process to set one up is, well, simple. For many of our readers, Simple offers easy tools to save and stay on track.
First, you'll need a free and mobile-friendly FDIC-insured checking account with Simple. What does that mean? Basically, Simple doesn't try to get you with hidden fees. It doesn't charge for ATM usage, monthly maintenance, or overdrafts. Applying online is a snap with only a few steps to get you there.
Once you've funded your Simple checking account, you can open a separate account, called a Protected Goals Account, to start putting away money for life's unexpected events. You can then set your own goals and benchmarks on what you would like to save and determine however quickly or gradually to build to it. That way, when you're faced with an unexpected expense, you'll be ready for it with the money you have saved. Even better, all of the money you put in your Protected Goals Account earns 2.02% APY. We think that the higher-than-average APY is a nice reward to encourage savings.
Simple's secret sauce to keeping you on track to save is that the Protected Goals Account balance is kept separate from your primary checking account. It is designed to address some of the common obstacles we all have when it comes to squirreling away that emergency money. This money is kept separate so you won't swipe and accidentally spend it for non-emergency purchases.
Transferring money into your Emergency Fund can be automated, too. With Simple's automatic funding options, you can determine the amount you want saved and the date you want it saved by, and money will be transferred daily from your primary Simple checking account into your Protected Goals Account. This helps those who may forget to transfer money into their emergency savings.
Creating a savings of any kind can be intimidating, especially for those of us who don't have a lot of cushion in our budget, and even more so for those of us who don't have a budget at all. With the Protected Goals Account at Simple, though, creating a savings for emergencies can be easy. That way, you may still be worried about The Big One, but at least you don't have to be worried about saving for it.
Start saving for emergencies. Go to simple.com/emergency-fund.
The finest print: Banking Services provided by BBVA USA, Member FDIC. The rate is effective as of June 6, 2019, is variable, and subject to change after the account is opened. Accounts subject to approval. Balances between $0.01 – 1,999.99 in your Protected Goals Account will earn 2.02% Annual Percentage Yield. Balances $2,000 and above in your Protected Goals Account will earn 2.02% APY.