Money rolled up in a bundle

Saving Your Money

June 29, 2017

There are so many reasons to save money in our lives and yet we Americans find it frustratingly hard to do. A chart below of historic savings rates through 2006 shows the frightening trend over the last 15 years. Americans aren’t saving enough. As the cost of living, education and retirement rise, the savings rate continues to remain below 5%. According to the GDP report issued Thursday May 31, 2012, Americans saved 3.6% of personal income in the 1st quarter of 2012. This remains well below the near 8% average that Americans put away in 50’s, 60’s, 70’s and 80’s. The short of it is that we all need to save a little more to prepare for the future and for the unexpected. Here is how First Bank of the Palm Beaches can help.

US Saving Rate Info graphic

Figure 1: US Savings Rates from 1930 to 2006 (Data from U.S. Bureau of Economic Analysis)

Savings Accounts

There are many reasons to hold some cash in liquid savings accounts such as our Youth Savings, Personal Savings and Personal Money Market accounts including saving for you children’s college education or for cars or other large purchases. Know though that the main reason is that all of us should have from 1.5 to 3 months’ worth of income in a savings account to be held for a rainy day. In this economy, you never know what the future holds and First Bank’s customers should be prepared.

CDS and IRAs

First Bank does not manage investments accounts but does offer CDs and IRA products tied to CDs in order to help put money away for longer periods of time. Interest rates are at historic lows, but two and three year CDs accomplish both goals of generating a return on cash as well as locking funds into savings products so as to discourage frivolous spending.

Funds Transfers

Savings is about habit. Get into the habit of putting money away every month and make yourself stick to it, no matter how painful it is. Setup an automatic transfer via First Bank’s Online Banking product every month and treat the money that goes into your savings account as if it were gone.


As a community bank, we are not your one stop shop for all of your financial needs. However, we strongly recommend to our customers to seek out professional guidance for help in planning for your future. If you play golf and you are ready to take your game to the next level, you hire a coach. The same is true of investments. First Bank is happy to recommend financial advisors and investors that approach their customers and community with care and competence.