Could Your Savings Be Earning More?

Many people think that once they’ve built up a savings account, they’re done. But the truth is, where you keep your money can make a difference. Different accounts are designed for different goals, and using the right combination may help you earn more while still keeping your money available when you need it.

You don’t need thousands of dollars to benefit from different savings products. Whether you’re just starting to save or you’ve built a healthy emergency fund, understanding your options can help your money work a little harder for you.

When you’re thinking about your savings goals, it’s important to give every dollar a job. Instead of thinking, “I have money,” think, “What is this money for?”

For example, when you receive your paycheck, think about how much you’ll need for monthly bills, your emergency fund, vacation plans, or money you’re setting aside for a larger goal like a new car, a down payment on a home, or retirement. When your money has a purpose, you’re less likely to give in to impulse purchases.

Now let’s look at the financial products that can help your money work for you.

At Crane Credit Union, we offer a variety of accounts to meet different financial needs, including savings and checking accounts, High Yield Checking accounts, Money Market Accounts, certificates, and more. Let’s focus on four of the most common options: traditional savings and checking accounts, High Yield Checking accounts, Money Market Accounts, and Certificates.

Traditional savings and checking accounts are great for your everyday banking needs. They give you easy access to your money while providing a place to build your savings. However, if you tend to keep a larger balance in your checking account a High Yield Checking account may be worth considering. These accounts offer higher dividend rates, up to a maximum balance, helping you earn more on money you’re already keeping in your account. It’s important to remember that these accounts often have requirements, such as enrolling in e-Statements or meeting a minimum number of debit card transactions each month.

Money Market Accounts can be one of the hardest products for people to understand. At first glance, they may appear to offer lower rates than a High Yield Checking account, so it’s natural to wonder what makes them different.

The biggest advantage is that Money Market Accounts are designed for larger balances. They’re a great option for money you want to keep accessible but don’t expect to use every day. If you have more savings than your High Yield Checking maximum, you may not be earning as much as you could. A Money Market Account allows those higher balances to earn a more competitive return while still giving you access to your funds when you need them.

Certificates are designed for money you know you won’t need for a while. Because you’re committing to leave your money on deposit for a set period of time, credit unions are often able to offer higher returns with predictable earnings. Certificates are available in a variety of terms and rates. While you may see a certificate special being promoted, there are always other term options available for people who prefer a shorter or longer commitment.

When you’re deciding which financial product is right for you, it’s important to think beyond today. Will you need access to your savings in the next few months? Do you have a nest egg you won’t need for a while? Are you just beginning to build your savings and want flexibility as life changes? Asking yourself these questions can help you choose the account that best fits your goals.

If you have savings you don’t expect to need for some time, a certificate could be a great way to earn more on those funds. If you’ve built a healthy savings balance that’s above the High Yield Checking threshold but still want access to your money, a Money Market Account could help you maximize your earnings. If you’re just getting started and want an account for your everyday spending while earning more than a traditional checking account, a High Yield Checking account can be an excellent place to begin.

No matter where you are in your financial journey, choosing the right account can help your money work harder for you.

Stop by your local Crane Credit Union branch today to talk with our staff about your account options. We’d be happy to help you find the combination of accounts that best fits your financial goals and helps you make the most of your membership.

Information provided is for educational purposes only and is not intended as financial, legal, or tax advice.