Savings Savvy

For most people, buying a new car or a house isn’t a matter of writing a big check from a checking account. Who keeps that kind of money just sitting around for everyday use? If you do have that much money in your checking account, consider the benefits of keeping it in savings accounts.

When you put your money in a regular savings account, money market account or Certificate of Deposit (CD), your money will grow by earning interest. Each type of account has unique features such as interest rates and the length of time your money will be deposited (the term of the account) to help you choose which one fits your savings goal.

Regular Savings Accounts
For your short-term savings goals, a regular savings account allows you to deposit money and earn interest with the ability to make a limited number of withdrawals each month. You can open separate savings accounts to save for different goals like school, a new car or a vacation.
Money Market Accounts
If you want to earn more interest on your savings, a money market account functions similarly to a regular savings account, but generally offers a higher interest rate. The main difference is that money market accounts require a higher minimum balance to open and you must maintain a specified daily balance in order to earn interest. You’re able to make limited withdrawals from this type of account as well.
Certificates of Deposit (CDs)
If you’re saving money for something further down the road a CD may be the answer to your needs. These accounts do not allow for withdrawals (unless you want to pay a penalty). Instead you deposit your money for a specific amount of time. At the end of that time period, your CD has “matured” and you’re able to cash in your certificate. In exchange for locking up your money for that amount of time, you’ll usually receive a higher interest rate than a regular savings account or a money market account.
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Federally insured by NCUA. National Credit Union Administration, a U.S. Government Agency – Member accounts are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.

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