How to make saving for emergencies more rewarding
You may already be a savvy saver, but there’s value in having a savings account set aside strictly for a rainy day — especially when it comes to the unexpected, and events like what we’re experiencing right now. From illness and sudden unemployment to natural disasters and critical home repairs, times when you might need to dip into savings take many forms and, of course, are difficult to predict.
We recently surveyed more than 2,000 American Airlines AAdvantage® members and non-members about their saving behavior and financial goals, and 83% said that they would open a “clean” savings account just to use to save for something specific. Here’s what you need to know about saving for the unexpected, and how a dedicated savings account can be a smart part of your strategy. Plus, we’ve included a few tips on how to put your emergency savings to work in a Bask Savings Account, where your money earns miles that you can save for future travel.
How much should an emergency fund be?
So, you’re already saving – but are all your eggs in one basket? It’s a good idea to have multiple separate accounts, each of them with a designated savings purpose. For example, you don’t want to withdraw money from your emergency account to splurge on a new TV. Instead, take a little time to think through your top savings needs and create an account dedicated to each one. You might have things like “college tuition fund” or “home improvement fund” on your list of things to save for, or maybe you’re interested in setting money aside for a special event or future travel that you hope to experience later. No matter what your needs are, you should always have an emergency savings account.
A good rule of thumb for how much an emergency fund should be is to aim to cover at least six months of living expenses. Ultimately, setting a target dollar amount for exactly how much to put into your savings account is up to you.
How does Bask Bank reward for saving?
Opening a Bask Savings Account is a rewarding way to grow your savings while also earning American Airlines AAdvantage® miles that you can use the next time you travel. Bask Bank offers an easy way to start a designated emergency fund right away. The sign-up process takes just a few minutes, and you’ll earn one AAdvantage® mile for every dollar saved annually. There are no online fees, and no minimum account balance requirements. Sometimes there are special offers, too. Saving with Bask Bank can be a great way to grow your rainy-day fund while also earning miles to use when you travel in the future.
What’s the best way to save for an emergency?
Once you’ve set up an account designated for emergency savings, you’ll need to decide how to fund it. It’s advisable to choose a small amount that works for your budget and set up recurring transfers into your emergency savings account a few times each month. Setting up recurring deposits from your main checking account to your savings account means that you don’t have to remember to transfer money into savings yourself. And it gives you control of when money is transferred, so you can schedule recurring deposits to be made after you receive your paycheck (or whenever is most convenient). The amount you choose to transfer into your emergency savings each month should generally comprise 6%-8% of your income, according to most experts.
If you don’t have one, consider starting a savings account with Bask Bank. You’ll be surprised by how saving a little bit at a time can make a big impact — not just on your savings or your AAdvantage® mileage balance, but also in your confidence to face the future.
Build Savings, Earn Miles
Deposit $1,000, earn 5,000 AAdvantage® miles
Must hold a minimum balance of $5,000 for 90 days within 120 days of opening an account.
AAdvantage® bonus miles are awarded within 10 business days upon meeting offer qualifications and may take 6-8 weeks to post to your AAdvantage® account.