Top Savings Tips to Save for a Rainy Day

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Posted On: September 2, 2024 by Peoples Bank of Kankakee County in: Saving

Life has a way of throwing unexpected surprises our way, even when we've meticulously planned our budget. Whether it's a leaky roof or an impromptu trip, having a rainy day fund can help you navigate these bumps without derailing your financial goals. These top savings tips can help!

What Are Rainy Day Savings?

Rainy day savings are small reserves set aside specifically for those unplanned expenses that don’t fit into your regular budget. Think of it as your financial safety net for minor, one-time surprises—whether it's a necessary car repair or a spontaneous celebration.

Rainy Day Savings vs. Emergency Fund

While both rainy day funds and emergency funds serve to protect your finances, they do so in different ways. Rainy day savings are there for smaller, non-catastrophic expenses. In contrast, an emergency fund is your lifeline for more significant financial disruptions like job loss or a medical emergency. Having both allows you to handle anything from a broken appliance to several months of living expenses.

How Much Should You Save?

The amount you need in your rainy day fund will vary based on your lifestyle and financial goals, but a good target is between $500 and $2,500. This range offers a buffer against those unexpected expenses without the need to dip into your emergency fund or take on debt.

How to Build Your Rainy Day Fund

1. Open a Dedicated Account: Start by setting up a separate savings account specifically for your rainy day fund. This will help you keep track of your progress and resist the temptation to spend it on non-essentials.

2. Budget for Savings: Incorporate your rainy day fund into your monthly budget. Even a small, regular contribution can add up over time.

3. Start Small: Don't stress if you can only set aside a little at a time. Every dollar counts and brings you closer to your goal.

4. Build the Habit: Consistency is key. Make saving a regular part of your financial routine.

5. Adjust as Needed: As your financial situation changes, reassess and adjust your contributions to your rainy day fund.

6. Make It Fun: Try money-saving challenges to keep the process engaging and accelerate your savings.

Why Peoples Bank?

At Peoples Bank, we're here to help you build a secure financial future. Our savings accounts are designed to help you grow your rainy day fund with ease. Start today, and give yourself the peace of mind that comes from being financially prepared for whatever life throws your way.

Protect yourself from life's little surprises - start your rainy day fund today with Peoples Bank!

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

We have standard overdraft practices that are available after your account has been open for 30 days and as long as you maintain your account in good standing.
We also offer an overdraft protection plan, Overdraft Protection Sweep, a link to a savings account. It may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

After your account has been open for 30 days and as long as you maintain your account in good standing, we do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

ATM transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Peoples Bank of Kankakee County pays my overdraft?

Under our standard overdraft practices:

We will charge you a fee of up to $30 each time we pay an overdraft.
The maximum daily overdraft fee per presentment or item paid using the Overdraft Reserve Program is $150.00 per day.
No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $30 or less.
There is an overdraft fee of $5 per day that will be charged beginning the 4th consecutive business day your account is overdrawn.

Nonsufficient funds (NSF) fees - if an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money in your account and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times by the merchant or other payee until it is paid, and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional costs to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

What if I want Peoples Bank of Kankakee County to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions after your account has been open for 30 days, you may opt in.

You have an ongoing right to change this consent at any time. If your overdraft privilege has been revoked for any reason, the opt-in or opt-out selection may not apply. Please contact your nearest office for more information.

Alternate ways to Opt In/Out or make changes:

By Phone. Our Customer Care Representatives can be reached at 815-936-7600.
By Mail. Peoples Bank of Kankakee County, 333 E. Court Street, Kankakee, IL 60901
In Person. Please visit your local office and ask a representative to help you decide which plan is best for you.