Savings

In an automatic savings plan a contributor automatically deposits a fixed amount of money at specific time frames. Every time the individual receives a paycheck, for instance, the designated amount is automatically transferred into a savings account.

The micro savings system is a saving option for people with limited income. They work much like regular savings accounts but average fees, such as those for a minimum balance, are waived. This type of plan allows you to save small amounts of money over time to help you reach a better state of financial security over time.

An emergency fund is a stash of money intended to be a safety net in times of financial distress, such as an illness or major home repairs. It can reduce the need to draw from high-interest debt options, such as credit cards or unsecured loans.

The DOD Savings Deposit Program (SDP) is a special savings program for members of the military who serve in designated combat zones. It allows military service members to earn interest on deposits, but there are rules for eligibility, contributions, and withdrawals.

A liquidity cushion refers to a company's on an individual's cash or other liquid assets that you may hold to meet unexpected demands for cash. A company or individual's operating expenses versus their income may have a thin margin. Having a liquidity cushion means they won't have to sell assets to cover expenses.