WASHINGTON (5/30/14)--Traditional savings accounts hold a strong advantage for savers, but according to a survey released Thursday by America Saves, transaction-based checking accounts are a common place for consumers to stash their cash.
Ruling out retirement accounts, checking accounts were cited by one-third of respondents as a place to put money aside for savings. When selecting more than one option for saving, another 13% said they kept their savings in a "safe place at home."
Two-thirds selected credit union or bank accounts as their primary savings vehicle followed by brokerage accounts (11%) and money market accounts (10%).
Although 3% said a "safe place at home" was their primary place to house their savings, nearly 10% of those who make less than $25,000 reported using home as a literal piggy bank.
The survey of 1,220 America Saves participants also found that automated savings--either through direct payroll deposit or automatic electronic funds transfer--was the most popular method of saving at 70%.
"For years America Saves has promoted automatic savings as the key to successful saving. We also consistently receive tips from savers which say setting up automatic savings methods is one of the best ways to save because they can set it and forget it," said Director Nancy Register.
In-person contact increased with age and was higher among those with less than $25,000 in income.
Of the 15% who said they had only one goal, 34% focused on saving for retirement. Nearly a third of the savers had three goals in their minds to achieve.
The America Saves campaign is managed by the Consumer Federation of America.