If there’s one thing that your credit union has made easy for you, it’s saving money. There are a number of ways you can grow your non-retirement savings with your CU and get a nice return to boot.
- Savings accounts. The most obvious choice for saving money is to open up a savings account. Your credit union can link the account with your checking to make transferring cash super easy and it will generally offer higher rates than other financial institutions, so your money will be “working” harder for you than it otherwise would.
- Money market accounts. Like savings accounts, a money market account is a place to put and grow your cash, but it will generally have a higher interest rate than savings.
- Certificates of deposit. Your credit union has another type of deposit account, called a certificate of deposit or CD. This account pays an even higher interest rate than savings or money markets, but it does come with some strings attached in that you can’t access the principal deposit without penalties for a certain period of time. The longer that period, the higher your interest rate.
- Club accounts. If you want to set aside some savings specifically for holiday spending, a vacation, or other major event, and you want to keep them separate from your other savings, then a club account is the perfect place for you to do it.
- Interest-bearing checking. Savings accounts have a restriction to the number of withdrawals you can take from them per month. If that’s hard for you to manage or you simply like to keep your money all in one place but don’t want to miss out on the interest paid by savings accounts, you can consider an interest-bearing checking account.
Before you decide which account is your perfect fit, check the various restrictions your credit union might have in place regarding minimum balance and activity. Then, pick the best account or combination of accounts, and let the savings begin!