Money management skills: Exploring options for where to put your money

Evaluating a financial strategy can be a challenging task. With so many options available for where to put your money, it can be difficult to know where to start or how to be sure you're making the most of your cash. From savings accounts to investment vehicles, each choice comes with its own considerations. Depending on your goals and time horizon, some people also consider life insurance for savings, particularly permanent policies that may build cash value over time. As you explore these options, applying sound money management skills can help you make informed and confident financial decisions.

Evaluating short and long-term savings account options for investing cash

When looking to grow savings, it’s important to consider both short and long-term goals and which accounts could be a good match for your individual goals, risk tolerance, and financial needs. Are you looking to build an emergency fund? Save for a down payment on a home or a family vacation? Or grow retirement savings?

High-yield savings accounts, certificates of deposit (CDs), money market accounts, and bonds all offer unique benefits and trade-offs. Asking the right questions can help guide your investment decision and create a strategy that works best for you.

How accessible is my money?

Setting aside cash can be a smart move—especially in a world where the unexpected is part of everyday life. If you anticipate needing funds in the next 3–12 months, consider keeping them in a short-term savings account to prioritize liquidity and minimize penalties. But just as important as saving is knowing how easily those funds can be accessed if needed. Some accounts may have withdrawal limits, penalties, or waiting periods that could make it harder to access money during an emergency. Understanding these restrictions can help ensure the right balance between earning potential and accessibility.

Is my money “working hard” enough?

While flexibility and accessibility are key, it’s also worth considering how much growth potential a savings account truly offers. According to the FDIC, the average interest rate for a savings account is just 0.38%. Shopping for competitive yields can help you save money and make money by ensuring your cash earns more while it waits. Accounts like high-yield savings, CDs, and money market accounts often offer better returns than traditional savings accounts, especially when funds can be left untouched for a period of time.

The right choice often depends on factors like time frame, risk tolerance, and how frequently the funds might need to be accessed. Exploring a mix of savings strategies can also help make sure money isn’t just sitting, but steadily working toward your future goals.

What fees am I paying?

Tucking funds away might seem like an easy way to protect their value, but it’s not always that straightforward. Some accounts come with fees that can chip away at savings, such as charges for falling below a minimum balance or annual maintenance fees. Be sure to review these costs when evaluating where to place money. Flexibility also matters, especially if funds may need to be accessed quickly. Reducing avoidable fees is one of the simplest ways to save money and make money, because every dollar you keep can continue compounding toward your goals.

Are there smarter ways to grow savings and protect your family?

In the event of the unexpected, what financial support will be left behind for beneficiaries or loved ones? Traditional savings accounts typically pass along the balance and any accrued interest, offering limited growth and no additional financial benefit beyond what's already saved.

Certain accounts or investment options can help grow assets over time or provide added advantages, such as tax efficiency or enhanced value through long-term interest accumulation. Evaluating these alternatives can help ensure that savings not only provide security today but also offer meaningful support in the future. Some households also consider life insurance for the death benefit protection to complement traditional accounts, in addition certain permanent policies can build cash value over time and offer added flexibility.

What can I do with extra money in savings?

Having a healthy savings cushion is a great place to be, and if there's a surplus beyond what's needed for short-term goals or emergencies, there may be an opportunity for those funds to do more. If you’re in a position to move funds around, options like increasing retirement contributions can help boost retirement readiness and long-term financial protection. Some of that money could also be used to help protect your family’s future through a life insurance policy. For those seeking both protection and flexibility, exploring life insurance can pair a policy’s death benefit with the potential to build accessible cash value.

Certain types of life insurance, such as permanent policies, not only offer a death benefit but may also have the potential to accumulate cash value over time. This cash value can serve as an additional financial resource to cover unexpected expenses or help supplement income when needed, while offering added reassurance for loved ones.

Can permanent life insurance be an option?

While traditional savings accounts offer stability, FDIC insurance, and immediate liquidity, certain permanent life insurance policies—such as whole life and universal life—can accumulate cash value that grows tax-deferred and can be accessed through policy loans or withdrawals. This cash value can help fund education, help supplement retirement income, or serve as an additional source of financial protection. Some policies also include living benefits that may allow access to a portion of the death benefit upon a qualifying illness, subject to terms and conditions. Life insurance cash value is not a savings account and is not FDIC insured. If you’re curious how life insurance could fit your goals, talk with a financial professional who can outline the potential upsides and downsides for your situation.

Talk to Midland National about the opportunities permanent life insurance can offer

Whether you're looking for growth opportunities by investing cash or wish to build your long-term savings more efficiently, it's essential to explore financial solutions that align with your goals. While traditional savings methods like bank accounts and bonds offer stability, they may not always deliver the growth or flexibility you're looking for.

Midland National’s life insurance and annuity products can serve as powerful additions to your financial strategy by helping bring tax-deferred growth, financial stability, and protection for the future. To take full advantage of these benefits and discover personalized solutions tailored to your goals, consider meeting with a financial professional who can help you save smarter and build a clear path to financial confidence.

Indexed Universal Life Insurance products are not investments in the “market” or in the applicable index. They are subject to all policy fees and charges normally associated with universal life insurance.

Policy loans from life insurance policies generally are not subject to income tax, provided the contract is not a Modified Endowment Contract (MEC), as defined by Section 7702A of the Internal Revenue Code. A policy loan or withdrawal from a life insurance policy that is a MEC is taxable upon receipt to the extent cash value of the contract exceeds premium paid. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59½, with certain exceptions. Policy loans and withdrawals will reduce cash value and death benefit. Policy loans are subject to interest charges. Consult with and rely on your tax advisor or attorney on your specific situation. Income and growth on accumulated cash values is generally taxable only upon withdrawal. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to withdrawal charges, processing fees, or surrender charges, and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

B2-MN-12-25