Setting Up Savings For Sudden Home Repairs

In the Virgin Islands, homeowners face the full impact of home repairs. Unless certain items are covered under an insurance policy, the homeowner must pay out of pocket to have the items repaired. A financial advisor helps homeowners generate savings for sudden home repairs.

Contributing to a Savings Account

According to financial advisors, homeowners should start their savings account as early as possible. They can contribute any value they prefer initially. However, the financial advisor may provide insight into how much and how often the homeowner should deposit. If they live in a new construction, it is less likely that they will need funds immediately.

Online Interest-Bearing Checking Accounts

Online interest-bearing checking accounts generate higher interest values than standard options available at local banks. The accounts require the consumer to maintain a specific balance at all times to maximize their interest. The total value that stays in the account affects the total interest earned in each quarter. Financial advisors may advise the consumer to start the account and refrain from drawing money out of the account unless absolutely necessary.

Certificates of Deposit

A certificate of deposit is a viable solution for earning interest over an extended period of time. For example, some CDs have a maturity date of five years after they are opened. The financial advisor explains all options for CDs that are available to the consumer currently. The accounts also impose a penalty for early withdraws.

Using a Budget

A budget could also help the homeowner accumulate funds for sudden home repairs. By following a budget, the homeowner doesn’t spend excessively and avoids unnecessary costs. The funds generated by using a budget are often deposited into a checking or savings account to earn interest. The financial advisor will explain the right plan for the homeowner.

In the Virgin Islands, savings accounts help homeowners manage unexpected repair costs without a financial hardship. By following a strict plan, the homeowner won’t have to worry about going without vital services such as air conditioning. A local financial advisor creates a plan specifically for the homeowner’s needs. Homeowners who want to learn more about the plans contact Cane Bay Partners right now.