Why You Shouldn’t Feel Bad About Saving Your Stimulus Check | St. Johns Bank

By now, all Americans should have received their portions of the stimulus monies Congress approved to help the economy recover from coronavirus-related shutdowns. For those who are financially stable, the best choice may be to set the cash aside, whether to bolster retirement funds or as a bit of savings that can help support them if their situations change.

Any time Congress appropriates funding for a stimulus such as this one, it does so with an expectation Americans will spend the money to help bolster the economy. As a result, news coverage in the months after those payments often centers on whether they were followed by increases in money flowing into the economy.

For example, news outlets pointed out recently consumer spending fell 13.6% in April, despite the fact the stimulus payments bolstered incomes by an average of 10.5%.

All that might make you feel like you aren’t doing your part if you decide to deposit the money into a bank account, rather than a cash register. But it’s never a bad idea to invest in your future, whether that means putting money away for kid’s college fund or building a rainy day fund in case you hit a rough patch.

Savings Opportunities for Stimulus Money

If you’re looking to create a bit of a cushion that can give you confidence as uncertainty continues, short-term investments and accounts may be the right choice.

For instance, St. Johns Bank offers certificates of deposit for terms ranging from three to 60 months, with minimum opening deposits of $1,000.

Statement savings are another great option, offering quarterly, compounding interest with a minimum opening deposit of $100 and a $200 minimum daily balance required to avoid a small monthly fee.

If you’re concerned about the risks future waves of the virus pose, you might consider a health savings account (HSA), which can be used exclusively to cover qualifying medical expenses for the account owner, and his or her spouse and dependents. These are interest-bearing accounts with $100 minimum opening deposits that are assessed a $5 quarterly fee.

The IRS offers resources that can help you better understand HSA.

For long-term investment, individual retirement accounts (IRA) offer interest and potential tax benefits. St. Johns Bank offers both traditional IRA, which collect tax-deferred funds, and Roth IRA, which are funded with post-tax dollars.

If you want more information about investment opportunities that can put your stimulus funds or other savings to work for you, reach out to St. Johns Bank today.