A savings account is a type of account that is kept at a bank or financial institution and draws interest. The savings account differs from a checking account in the sense that the person cannot draw money out of the savings account through checks or means that they can use to draw money out of a checking account.
Case Details: There are $27,000 in a savings account and a matching 401K.
In most cases, the person may want to place the extra money into their 401K instead of an IRA. The IRA is generally not tax deductable where the 401K is tax deductable. The 401K is normally funded with money that is pre-tax. It generally does not matter which account that they person chooses in regards to getting collage funding because all the accounts are treated the same when the finances of the person is looked at.
Additional Questions: Is there a limit in which the money will not be covered?
When a person has money in a savings account, regardless of how many or how many different banks, then all the funds are covered by the FDIC. Information regarding this can be found here; http://www.fdic.gov/deposit/deposits/insured/basics.html and http://www.fdic.gov/deposit/deposits/insured/faq.html. When it comes to any money that a person has in a bank or savings account, there is no financial amount limit that will keep the FDIC from insuring the money and covering it.
When the person goes to set up the savings account, they would need to determine what the purpose would be for the person to open the account. If the account is to teach the grandchildren the importance of saving then the following links will help to decide which one would be right for the grandchildren; https://home.ingdirect.com/kids-savings-account, https://www.usbank.com/savings/star-savers-club.html. If the person would like to open the savings account for the grandchildren’s college education, then they may want to consider the 529 plans, which can be found here; http://www.savingforcollege.com/529_plan_details/.
If the person thinks that they will withdraw the money before the one year mark, then they may need to look into a CD with no penalties. Most savings accounts generally pay on a large established bank may offer 3.75%. If the person has their money in a savings account that is in a very well known bank, then they may be looking at making $38,000 in interest. The person may want to look into the banks and what interest rates that they offer on interest. The person may also want to consult a finical planner to determine what type of account would be best for them to place their money into.
When a person wants to save money, then they may think about placing the money into a savings account. Savings account interest rates may help the person to gain extra money as well. When the person is considering a savings account, then they may run into questions regarding what savings accounts do, what savings accounts are best, or how would a savings account benefit a person. When these questions or concerns arise, then the person would need to consult an Expert.
Accountant that is knowledgeable about the cost of living for an adult disabled male that is our u ncle. Our house flooded so we did not deduct funds from my uncles Disability Income because we had to relocate 2 times during the flood and renovation of our home. How can I do an average? We were paying on our credit card and did not deduct rent and did no bookkeeping for the duration of about 1-1/2 years. We are still trying to get furniture but our parents have recent health issues and getting a bit of dementia. We are starting now to use his checks to buy food and a portion of the utilities, but that isn't going to pay or the months of not collecting his rent portion. How can I do this in an easy way? I am willing to take a loss and just do an average. I have to do a Representative Payee Report. At the moment I am interviewing caregivers for him as well and I need to start out with the right amount in his savings account because I need to make it last for him. The Assisted Living facilities in the area want approx. $3500 per month and said his funds would only last him 3 years!! I believe we can stretch his savings to last him 10 years and he can continue staying with his family. They said medicare would kick in after his funds are used but he would have to go into a different home.. I feel that is terrible to get used to a place and then have to leave....We could build an extra bedroom for a caregiver... A caregiver is sleeping behind a partition in the living room and they said they want a real bedroom..