Nearly half of consumers faced an emergency expense in the past year, but when it comes to financially preparing for the unexpected, many fall short, according to the new Summer Savings Survey from CIT Bank, conducted by The Harris Poll. Additionally, the survey also found that many consumers do not have enough savings to cover planned holiday expenses.
“More than one in four consumers do not save anything for unexpected events, such as a home repair or medical expense,” says Ravi Kumar, head of Internet Banking at CIT Bank. “More than a quarter report saving less than 5 
percent of their household monthly income for emergencies.”
How are consumers getting by? Family and credit cards top the list of resources that Americans rely on for financial support during emergencies. As for the planned expense of a trip, approximately one in three (29 percent) report taking extreme measures to pay for it, including taking out a bank loan, going into debt, emptying a savings account, borrowing money, or maxing out a credit card.
“Americans can do more to ensure that their lifestyles and savings priorities are aligned,” says Kumar. “But saving wisely is key.”
To plan the monthly amount you will need to save for
peace of mind, utilize free resources like CIT Bank’s online calculators at www.bankoncit.com/calculators. Then, consider looking for an account that makes your money work harder and offers some flexibility. For example, with a Money Market Account from CIT Bank, consumers can earn interest on their savings while keeping the option to make withdrawals at any time. With no monthly maintenance fees, minimum balance requirements, and transaction capabilities, consumers can save without sacrificing their earnings along the way.
Source: State Point