Category: Savings

Emergency Fund vs. Savings Account: What’s the Difference and Why You Need Both

We’ve all heard the saying, “Save for a rainy day.” But what if that “rainy day” is an unexpected car repair, a medical bill, or even a job loss? That’s where an emergency fund comes in. While a savings account helps you work toward your financial goals, your emergency fund is there to protect you when life throws the unexpected your way.

So, what’s the difference between the two, and how do you know how much to put in each? Let’s break it down in a way that makes sense — without all the confusing financial jargon.

Emergency Fund vs. Savings Account: The Quick Breakdown

  • Emergency Fund = Your financial safety net. This money is reserved for unexpected expenses, like car repairs, medical bills, or sudden job loss. You should be able to access it quickly when needed.
  • Savings Account = Your financial goals fund. This is where you set aside money for planned expenses like a vacation, a down payment on a house, or holiday shopping. You can leave the money here to grow over time while working toward a goal.

While they’re both technically “savings,” they serve very different purposes.

What Is an Emergency Fund?

An emergency fund is exactly what it sounds like: a stash of money set aside for true emergencies. These are unexpected financial hits that you can’t plan for, like:

  • Major car repairs
  • Medical emergencies
  • Sudden job loss
  • Urgent home repairs (like a broken furnace in the middle of winter!)

The key to an emergency fund is that it should be easily accessible — meaning it shouldn’t be locked away in an investment account where you’d face penalties for withdrawing it. A high-yield savings account or a basic savings account with quick access is usually the best place to keep it.

How Much Should You Save? Financial experts recommend keeping at least three to six months’ worth of essential expenses in your emergency fund. If that sounds overwhelming, start small! Even having $500 to $1,000 can make a huge difference in an emergency.

What Is a Savings Account?

A regular savings account is where you keep money for planned expenses or future goals. Unlike an emergency fund, this money isn’t meant for sudden, unexpected bills — it’s for things you know you’ll need or want in the future.

Some common savings goals include:

  • Vacation fund
  • Down payment for a house
  • Holiday shopping
  • College tuition
  • New car

Savings accounts help you stay on track with your goals by keeping money separate from your everyday spending account.

How Much Should You Save? That depends on your goal! If you’re saving for a vacation, set a clear target (like $2,000) and work toward it. For long-term goals, like a house or retirement, it may take years — but every little bit counts!

Key Differences Between an Emergency Fund and a Savings Account

FeatureEmergency FundSavings Account
PurposeCovers unexpected expenses (car repairs, medical bills, job loss)Helps you save for planned purchases and financial goals
AccessShould be easily accessible in a savings or money market accountCan be in a standard savings account, CDs, or even investments
Amount to Save3–6 months’ worth of expenses (start with $500–$1,000)Depends on your savings goal
When to Use ItONLY for emergenciesFor vacations, home down payments, big purchases, etc.

Why You Need Both

Having both an emergency fund and a savings account ensures that you’re financially prepared for anything. Without an emergency fund, you might end up pulling from your savings when unexpected costs arise, setting you back on your goals.

Example: You’ve been saving for a vacation, but then your car breaks down. Without an emergency fund, you’d have to dip into your vacation savings, delaying your trip. But with an emergency fund, you can handle the repair without touching your vacation money.

How to Start Building Both

Not sure where to begin? Here are a few easy steps:

  1. Set Up Separate Accounts – Keep your emergency fund and savings account separate so you’re not tempted to spend your emergency money on non-essentials.
  2. Automate Your Savings – Set up automatic transfers from your checking account to both funds each month — whatever amount you can afford.
  3. Start Small, Then Grow – If saving three months’ worth of expenses feels impossible, start with $500 in your emergency fund and build from there.
  4. Prioritize Your Emergency Fund First – Before focusing on long-term savings, make sure you have a solid emergency cushion.

Final Thoughts

Think of your emergency fund as your financial safety net and your savings account as your future goals fund. By keeping them separate and contributing to both, you’ll be prepared for life’s surprises while still working toward your dreams.

If you’re ready to start saving, Peoples Bank & Trust offers savings accounts that make it easy to build your financial future. Stop by a branch or give us a call today to open an account and start taking control of your money!

Start an Emergency Fund Today

Peoples Bank & Trust Co.
Member FDIC, Equal Housing Lender
NMLS #407724

Parents shopping in store with child

7 Ways to Save on Back-to-School Shopping

As the back-to-school season approaches, many parents and students are looking for ways to save on essential supplies. Here are seven tips to help you make the most of your budget:

  1. Create a Budget and Stick to It: Before you start shopping, determine how much you can afford to spend. Make a list of necessary items and prioritize them. This will help you avoid impulse purchases and stay within your budget.
  2. Shop Sales and Use Coupons: Keep an eye out for sales, discounts, and coupons. Many stores offer significant savings during the back-to-school season. Combine sales with coupons for even greater discounts.
  3. Buy in Bulk: For items like notebooks, pens, and pencils, consider buying in bulk. This can often be cheaper in the long run, especially if you have multiple children or can share supplies with other families.
  4. Take Advantage of Tax-Free Weekends: Many states offer tax-free weekends during the back-to-school season. Plan your shopping around these dates to save on sales tax.
  5. Use Credit Card Rewards: If you have a credit card that offers rewards, use it for your back-to-school shopping. You can earn points, cash back, or other rewards that can help offset the cost of supplies.
    1. Apply for a VISA Rewards Platinum credit card with Peoples Bank and Trust. As you shop for back-to-school supplies, get rewards points you can redeem on merchandise and travel. Enjoy fraud monitoring and zero fraud liability! Learn about the VISA Rewards Platinum today.
  6. Shop Online: Online retailers often offer competitive prices and exclusive deals. Plus, you can easily compare prices across different websites to find the best deals.
  7. Open a Savings Account: Consider opening a savings account specifically for back-to-school expenses. By setting aside a small amount each month, you can build up a fund to cover these costs without straining your budget.


By following these tips, you can make back-to-school shopping more affordable and stress-free. Happy shopping!

Get the Most Out of Your Rewards

Getting the Most Out of Your Rewards: Christmas Shopping Edition

The holiday season is upon us! As we gear up for the most wonderful time of the year, it’s not just the spirit of giving that warms our hearts; it’s also the excitement of receiving rewards and making the most out of our Christmas shopping endeavors. In today’s festive guide, we delve into the art of maximizing rewards during the holiday season – a time when every purchase can bring a little extra sparkle to your holiday celebrations. 

Santa’s Secret: Plan Ahead

  • When it comes to getting the most out of your rewards while Christmas shopping, the early bird gets the best deals! Create a plan ahead of time including reviewing your rewards program, creating a shopping list, and setting a budget! 

Discover the Power of Points Perks 

  • Many credit cards offer exclusive discounts, deals, and bonus rewards during the holiday season. Check for partnerships with retailers and online stores to get the most out of your rewards. Don’t miss out on an opportunity to multiply your festive joy! 

Cashback Wonderland 

  • Many credit cards offer the option to earn cashback on your everyday expenses. During the holiday season, use your cashback rewards to replenish your budget or treat yourself! Every swipe is like getting a little extra Santa surprise! 

When In Doubt, Get a Gift Card

  • If you are struggling to find the perfect present, consider giving a gift card. Gift cards are versatile, and some rewards programs allow you to redeem points on gift cards! 

Spread Christmas Cheer with Travel Rewards 

  • If your credit card rewards include travel miles, the holiday season is the perfect time to explore magical travel options. You can turn your rewards into an unforgettable holiday experience by using your travel rewards this holiday season. 

Safeguard Your Information 

  • As you begin Christmas shopping, whether online or in-store, it’s crucial to prioritize security. Use your credit card’s security features such as contactless payments to help protect your financial information and regularly review your credit card statements for any unauthorized transactions. 

Leverage Online Rewards

  • Christmas shopping is now easier than ever with online options and your credit card can make the experience even sweeter! Some credit cards offer bonus rewards for online purchases, so be sure to review your credit card’s offerings to find out if you can earn more by Christmas shopping online! 

Earn Rewards Responsibly 

  • With the excitement of the holiday season and the multitude of reward options, don’t forget to set budgets and stick to them. You can maximize your rewards without losing sight of your financial goals by staying within your budget and not overspending. 

Make this holiday season more festive than ever by unleashing the potential of your credit card rewards! To learn more about our credit card options at Peoples Bank & Trust, head on over to our website or contact us. We hope that you have a joyful and rewarding holiday season! 

The Spender's Guide to Saving Money in 2023

The Spender’s Guide to Saving Money in 2023 

For those who love to spend money or often find it hard to restrain their purchases – this blog is meant for you to start 2023 off with smart saving habits. Spending money is most definitely easier than saving. Here are some tips to rein in on spending as well as save when spending. Keep reading to learn the spender’s guide to saving money in 2023.  

Step 1: Automate Your Paychecks  

Automating your paychecks is an easy way to save your money and hold yourself accountable to your budget. Distributing your paycheck each time will send a percentage of your money (up to you the percentage you set) directly into your designated account. Doing this allows you to allocate funds towards your savings, emergency fund, checking account, budget for bills, etc. It is important to set aside money for your fixed expenses as well as money used for coffee outings, gas, occasional splurges and such.  

Need a savings or checking account – we can help!  

Step 2: Utilize Autopay 

Along with automating your paycheck, it can also be a tip for budgeting and saving by utilizing autopay. Some companies even offer discounts simply for using automated payments. Companies such as internet providers, cellular businesses, and television networks will offer similar discounts. Look into this option to not only keep you organized and on track, but potentially add some additional savings to your pocket.  

The benefit of autopay can be a reward to you as it shows a level of commitment to paying your bills to a company. This is a great option to a avoid the potential of a late payment solely due to forgetting.  

Step 3: Don’t Keep Too Much Cash  

Spending cash can work for some but can also be difficult for others to spend sparingly. Even though you may automate your payments and paycheck, you can still leave aside a few hundred dollars (or whatever best fits your budget) as spending cash. A tip is to not keep your cash casually in your wallet to avoid spending it on random purchases. Plan out your spending in advance and get your cash out when and if you need it.  

If you find yourself spending money on non-essentials frequently, consider getting a white board or a day planner to list out those items, as well as items you have run out of, to plan into your budget in advance to grab the next time you are out.  

Step 4: Take Advantage of Cash Back on Your Purchases 

There are so many ways to take advantage of cashback on your everyday purchases. Many credit cards come with rewards that feature a cashback program. If you need a credit card, click here to learn more.  

Step 5: Use Store Rewards and Coupons  

When you plan to make a purchase, plan in advance what you’ll be getting and do your research to see if you can take advantage of your store rewards or apply any coupons. Most common stores typically over a rewards program. Sign up for store rewards and notifications for deals or coupons – if you find it offers no benefits, it is simple to unsubscribe.  

Saving money can be hard especially after a season known for spending! Take the tips from our Spender’s Guide for Saving to apply into your day-today and new year’s savings resolutions! 

Peoples Bank & Trust Co.  

Member FDIC  

Equal Housing Lender  

Money Moves for College Students

Money Moves for College Students

College is a fantastic learning experience for young adults but can often be a very expensive time of life. While many wouldn’t change their college experience for anything, we can all agree there would have been some things we would have done differently financially. Keep reading for some money tips for college students!

1. Don’t Carry a Balance on Your Credit Card

What may seem like a given, in a time of life where school is your primary focus, do not spend more than you can pay off in a month. College is a credit time to manage a credit card as well as build up your credit. Having poor money habits can easily tank your credit score and potentially put you in debt. If you do not have the money in the bank to pay for your expenses, do not charge your credit card. 

Need a credit card? Visit our website to get started!

2. Routinely Put Money In Your Bank Account

College can be a difficult time for consistent savings, but the best thing you can do is save every penny you get and stash it away in your bank account. Whether your money comes from a summer job, part-time job, or even a gift – save as much as you can! 

If you are in need of a checking or savings account, visit our website!

3. Be Smart with Your Student Loans

Paying for college can be tough and student loans are a great option to make it work for many students and families. Always keep in mind they are loans that you will eventually pay back. Apply for as many scholarships and grants as you can to help pay for your college. The less you borrow now the less you pay back later! 

If you are in need of a loan for college, we can help!

4. Work a Job If You Are Able

Working a job throughout college can often be a struggle, but if you are able, take advantage of the opportunity! Not only is this an option to make money to save up, but it is a good experience to add to your resume. There are many flexible jobs to apply for, especially for college students. Utilize your school’s resources or speak with a counselor to help you find a good option – potentially an opportunity on campus! 

College is a phenomenal time for students to learn not only the career path they choose to take, but real-life experience of expenses, budgeting, building credit, and more. Don’t let your money habits slip up in college. Incorporate these tips into your routine or share them with a college student in your life! Visit Peoples Bank & Trust Co to get the accounts and resources you need for financial success throughout your college years. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Home Equity Loan vs. Home Equity Line of Credit

Home Equity Loan vs. Home Equity Line of Credit 

A Home Equity Loan and Home Equity Line of Credit are both loans that use your home as collateral. Though they are very similar, they are different loans. Keep reading to learn what a Home Equity Loan and Home Equity Line of Credit are, their differences, and their benefits!

What Are They?

A Home Equity Loan and Home Equity Line of Credit, commonly known as a HELOC, are both loans which use your home as collateral. Both are fantastic options for borrowing money if you’ve paid down a significant portion of your mortgage. 

Home Equity Line of Credit: A HELOC is a line of credit in which the lender will agree to lend a maximum amount within an agreed-upon period and variable interest rate. Essentially, a HELOC uses a percentage of your home’s equity to provide a revolving line of credit, much like a credit card. Your monthly payments with a home equity line of credit will change over time. With a HELOC, disbursement of funds is made on an as-needed basis and repayment is interest-only during the draw period; you repay all the principal and any remaining interest afterward. 

Home Equity Loan: A home equity loan is very similar; however, a home equity loan is a lump sum that is disbursed upfront and paid back in fixed installments. Your monthly payments will be the same each month. With a home equity loan, disbursement of funds is an upfront lump sum and repayment starts as soon as the loan is disbursed. 

The Main Difference

HELOC: A home equity line of credit’s interest rate may vary and therefore your monthly payments on a home equity line of credit may change over time. With a HELOC, disbursement of funds is made as you need them, and repayment is interest-only during the draw period; you repay the principal and any remaining interest afterward.

Home Equity Loan: With a home equity loan your interest rate is fixed and therefore your monthly payments will be the same each month. With a home equity loan, disbursement of funds is an upfront lump sum and repayment starts as soon as the loan is disbursed. 

Pros and Cons

Home Equity Line of Credit (HELOC) 

Pros:

  • You only borrow as much money as you need
  • Flexible repayment
  • Tax deduction
  • May come with little to no fees

Cons:

  • Variable interest rates (changes based on market fluctuation)
  • Not a set repayment plan (can be a pro for some)
  • Maybe more debt to repay as it is a long-term credit option
  • Could lose your home if you default on the HELOC

Home Equity Loan

Pros:

  • Fixed interest rate
  • You borrow a lump sum to use for nearly anything
  • Little to no fees
  • Tax deductible
  • Set repayment plan (could be a con for some)

Cons:

  • Best terms go to those with a good credit score
  • Need a lot of home equity 
  • If property values decline, you owe more than your home is worth
  • Could lose your home if you default on the loan

As you can see, a home equity loan and home equity line of credit are fantastic options for homeowners. Now that you know the benefits and main differences, which is best for you? These loans are a great source of value to access cash for renovations, large purchases, home remodel projects, college tuition, a new vehicle, or nearly any other need. Visit our website to learn more or stop in to talk with a lender!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724

Why is Financial Literacy So Important

Why is Financial Literacy So Important? 

Lacking financial knowledge can result in bad money habits such as saving and investing. In this blog, we will outline what financial literacy is, why it is so important, as well as some tips to actively become more financially literate. How we spend and manage our money is crucial to our financial stability throughout every stage of our lives! 

What is Financial Literacy and Why is it So Important?

Financial literacy is the ability to understand and effectively use various financial skills to better personal finance, budgeting, and investing. Essentially, financial literacy is a strong foundation you build on your relationship with money and money habits. This is an ongoing process as you continue to learn through different points in your life. The earlier you start betting on your financial education, the better you will be later in life and when you retire. 

Stop waiting to prioritize your finances and start working on better habits to gain knowledge and improve all areas of finance, credit, and debt management to make financially responsible decisions—choices that are integral to our everyday lives. Evaluate your current financial situation, set goals, and learn something to become more financially aware and plan for your retirement. 

Ways to Improve Your Financial Literacy

Take this as a push to gain knowledge and financial growth. How can you improve your financial literacy? Here are some ideas: 

  • Seek financial knowledge
  • Subscribe to a financial newsletter 
  • Listen to financial podcasts
  • Join a financial club (investments, money management, money, financial literacy, etc.)
  • Read a personal finance book or blog
  • Speak with a financial advisor
  • Use social media to learn – join a finance group 
  • Make financial money moves (re-work your budget, open a savings account, open an investment account, put your money towards retirement, start an emergency fund, increase your retirement contribution) 
  • Consolidate high-interest debt
  • Make small changes in your spending habits; acknowledge bad habits and set goals to change them

How To Become Financially Aware of Retirement Planning

Money moves you make now will affect you later in life. Ultimately, saving for your retirement is securing your financial stability later in life. Here are the top tips to incorporate into your financial habits now to best save for your retirement: 

  • Focus on starting ASAP if you haven’t already
  • Contribute to your 401(k) routinely 
  • Open an IRA account
  • If you are 50 or older, take advantage of catch-up contributions
  • Create a spreadsheet to see where you are at and what you need to do to reach your retirement savings goal
  • Rein in your spending
  • Automate your savings

If you are looking to make good financial decisions and better your financial literacy, now is the perfect time to get started. Building a solid financial future is extremely important for where you are currently at in life and when you reach retirement. Take this time to reflect on your finances and educate yourself to make smart financial decisions and money moves – you will be extremely glad you did.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

What is a Certificate of Deposit

What is a Certificate of Deposit? 

Do you know what a Certificate of Deposit is? Today we are going to outline the top 5 reasons you should open a Certificate of Deposit (CD), what a CD is, and why it financially makes sense to open one now. Keep reading to learn about the benefits of a Certificate of Deposit.

1. What is a Certificate of Deposit (CD) 

For the folks who think the market is the only place to invest your money, we hope to change your mind by the end of this blog. A Certificate of Deposit is a product that provides an interest rate premium in exchange for the customer leaving a lump-sum deposit untouched for a predetermined period of time. Investing your money is the best way to make your money work for you – consider opening a CD with us to work yours.  

2. CDs Have Higher Interest Rates  

What you may not know is that CDs pay a significantly higher interest rate than savings accounts or money markets as long as you leave your deposit untouched for that predetermined period of time.  

3. If You Don’t Need the Money Immediately, Put it in a CD

There is a reason CDs pay higher interest rates than savings accounts and we are going to fill you in on why. You can pull your money in and out of your savings account as you please. With a Certificate of Deposit, you’re required to lock your money in for a set amount of time. With that being said, if you absolutely have to withdraw money from a CD you may experience a fee.  

So to put it simple, if you have a chunk of money saved that you don’t need immediately, it is worth it to open a CD and stash it away. As the saying goes, make your money work for you and it absolutely will if you move it from a Savings or Money Market account to a Certificate of Deposit 

4. CDs are Safer and More Conservative Investments

Certificates of Deposit accounts are known as a safer and more conservative investment option in comparison to stocks and bonds as they offer lower opportunities for growth, but with a non-volatile, guaranteed rate of return. Although you lock into a set period of time when you open a CD, there are options for exiting early should you encounter an emergency or change of plans.  

5. CDs Can Provide You Peace of Mind 

Certificates of Deposit provide you with fixed rates for fixed terms. In a world of unknowns, especially right now, knowing the benefits of a CD can provide invaluable peace of mind when it comes to your money. Feel secure in knowing potential gains in an uncertain market don’t outweigh the need for a financial product like a CD that provides reliable growth.  

Are you ready to move your money to a Certificate of Deposit? We can help answer any questions you may have and get your new account started! Contact Peoples Bank & Trust today to discuss a Certificate of Deposit!  

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Don't Overspend this Holiday Season - Steps to a Better Budget

Don’t Overspend This Holiday Season- Steps a Better Budget  

Summer has flown by and that means the holidays will be here before we know it. Setting a budget is crucial for not overspending during a very expensive time of year. Start saving and setting your budget now so that when the holidays arrive you aren’t scrounging to stay within your budget. Here are the top steps for creating a budget for the holidays, as well as some savings tips. 

Step 1: List Out Your Known Holiday Expenses 

Your best strategy to avoid overspending is to set and stick to a holiday budget. It is very important to list out early your known holiday expenses and remember the spending doesn’t stop with gifts. Plan for hosting, food, entertainment, holiday activities, decorations, travel, donations, cards, wrappings, stocking stuffers, work Christmas parties, or anything you typically spend money on during your holiday season. 

The process of creating your holiday budget is similar to your household budget – list all expenses and add them up. Seeing this total, you can evaluate if it is within reach or if you need to tighten up your budget. As you shop this is a list to refer to and decipher how much to spend on each item as you check off your list. 

Step 2: Set Your Spending Limit

The most important step is to identify how much you can afford to spend and set your spending limit. This amount should come out of cash or savings to avoid relying on debt. Look at your list of holiday expenses and remove items if at all possible, compare what you’ve totaled up to the money you have set aside for holiday spending. If your total is within reach, this is a time to be creative with how to save a little extra over the next few months to continuously set aside money for your holiday budget. Here are some ways to save extra:

  • Buy gifts early and on-sale
  • Shop Black Friday
  • Sell some things
  • Pick up a side hustle
  • Cut back on buying wants 
  • Reduce social spending
  • Tighten your budget up and send additional savings to your holiday fund
  • Take a holiday job

Step 3: Number Your Priorities

The holidays can be overwhelming if you don’t plan in advance, set your spending limits, and save, save, SAVE! To relieve some holiday anxiety, set your priorities and do not feel bad doing so. If your expense list seems to be long, it’s ok if you can’t afford every single item that’s where your priorities come in. Go through your list and assign each item a number based on its importance. Rework your list, putting your high-priority items at the top. Your high-priority items should be the first you save for and purchase. 

For example, suppose you decide that purchasing gifts is your top priority, while new holiday clothes for yourself are a low priority. As you work out your budget, you would allot more items to your gift fund than your clothing fund, possibly even waiting to purchase clothing until gifts are all purchased, and you have room in your budget. 

Step 4: Re-Work Your Budget; Allocate Funds

Allocating your funds is figuring out how much money to put towards each item on your list. Examine your list to roughly estimate how much each item costs and how much you plan to spend. Keeping this list realistic and projecting costs to be higher will keep you within your spending limit. If you have 20 gifts to buy, budget for each of these gifts at a doable cost. 

Step 5: Check in On Your Holiday Savings and Budget

When you have added up the amounts you’ve allotted for your items be sure this equals the total you set as your spending limit. If it doesn’t match up, this is the time to rework your savings plan or lower a budget for one of your priorities. Consider scaling back on activities or even how elaborate your holiday party may cost. This is where you can reference your numbered priorities list and see what can be rearranged to keep you within your budget. 

As you begin to shop and plans change, KEEP TRACK. Keep notes of expenses and receipts to know where you stand on purchases and stay within your desired spending limit. Don’t risk blowing through your budget by simply being unorganized or overspending. If it makes it easier, open an account specific to holiday spending to help you keep track of how much you’ve spent and to reference the cost of items as you shop. You also could create cash envelopes to keep priorities separate. 

There are several ways you can get ahead on holiday spending this year! The best thing you can do is start planning and saving now – you’ll thank yourself for a great financial start in the new year!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS# 407724