Best Type of Savings Account For You

When it comes to saving your hard-earned money, there are several options to consider, each with its own unique benefits and ideal uses. From traditional savings accounts to more specialized options like Certificates of Deposit (CDs), money market accounts, high-yield savings accounts, and Individual Retirement Accounts (IRAs), understanding the pros of each can help you make the best choice for your financial goals. Whether you’re saving for a rainy day, planning for retirement, or looking to maximize your interest earnings, there’s a savings vehicle out there to suit your needs. Let’s break down the pros of each to help you make an informed decision.

Traditional Savings Accounts

Why Consider It: Easy access and low risk make this a reliable choice for everyday savings needs.

Liquidity: Access your money anytime without penalties.
Safety: FDIC-insured up to $250,000.
Convenience: Linked to your checking account for seamless transfers. Great for emergency funds and everyday savings.

Certificates of Deposit (CDs)

Why Consider It: Higher interest rates reward you for committing your money for a fixed period.

Fixed Rates: Lock in a rate for the term of the CD.
Higher Returns: Generally higher interest than traditional savings.
Safety: FDIC-insured, low risk. Ideal for short- to mid-term savings goals where you won’t need immediate access to your funds.

Money Market Accounts

Why Consider It: Combines checking and savings features with competitive rates for a balanced approach.

Higher Interest Rates: Typically higher than traditional savings.
Safety: FDIC-insured, low risk. Perfect for those who want to earn more interest while still having some access to their money.

High-Yield Savings Accounts

Why Consider It: Maximize your savings with significantly higher interest rates compared to traditional accounts.

Superior Interest Rates: Significantly higher than traditional savings.
Online Accessibility: Manage your account easily online.
Safety: FDIC-insured, low risk. Best for those looking to grow their savings faster without losing access to funds.

Individual Retirement Accounts (IRAs)

Why Consider It: Tax advantages make this an excellent option for long-term retirement savings.

Tax Benefits: Contributions may be tax-deductible; earnings grow tax-free.
Variety: Choose between Traditional and Roth IRAs.
Retirement Focused: Encourages long-term savings. Ideal for retirement planning with significant tax advantages.

Specialty Savings Accounts

Why Consider It: If you have specific savings goals, such as education or a vacation expense

Pros: Tailored to specific goals (e.g., health savings accounts, education savings plans, saving for a child)
Cons: Limited to specific use cases, may have restrictions on withdrawals.
Best For: Saving for specific expenses

Each savings option has its strengths. Whether you need easy access, higher returns, or tax benefits, there’s a solution that fits your needs. Consider your financial goals and how quickly you might need your funds to make the best choice.

Ready to start saving smarter? Explore these options and see which one works best for you!

Truth In Savings Disclosure

TRUTH IN SAVINGS DISCLOSURE

Except as specifically described, the following disclosures apply to all the accounts.

Rate Information. The dividend rate, or interest rate, and annual percentage yield on your accounts are set forth on the reverse side. The annual percentage yield is a percentage rate that reflects the total amount of dividends/interest to be paid on an account based on the dividend/interest rate and frequency of compounding for an annual period. For Certificates of Deposit and IRA Certificates of Deposit, the interest rate and annual percentage yield are fixed and will be in effect for the term of the account. The annual percentage yield is based on an assumption that interest will remain on deposit until maturity. A withdrawal will reduce earnings.
Nature of Dividends. Dividends are paid from current income and available earnings after providing for the required reserves. The dividend rates and annual percentage yields are the prospective rates and yields that the Credit Union anticipates paying for the applicable dividend period.
Compounding and Crediting. Interest and dividends will be compounded and credited as set forth on the reverse side. The dividend/interest period for each account is also set forth on our Rate and Fee Schedule. The dividend/interest period begins on the first calendar day of the period and ends on the last calendar day of the period.
Balance Information. The minimum balance required to open each account is set forth. Interest is calculated by the daily balance method which applies a daily periodic rate to the principal in the account each day.
Accrual of Dividends. Dividends will begin to accrue on cash deposits on the business day you make the deposit to your account. Dividends will begin to accrue on noncash deposits (checks) on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will not be paid.
Account Limitations. The account limitations for each account are set forth in our Membership and Account Agreement
Your account will mature on the maturity date set forth on your account receipt or renewal notice.
Early Withdrawal Penalties. A penalty may be imposed if you withdraw any of the certificate funds before the maturity date or the renewal date, if this is a renewal account.
Amount of Penalty. For Certificates of Deposit and IRA Certificates of Deposit the amount of the early withdrawal penalty for your account is 90 days’ interest for a term of 12 months or less, and 180 days’ interest for a term over 12 months.
How the Penalty Works. The penalty is calculated as a forfeiture of part or all of the interest that have been earned on the account. This penalty applies to earned interest and principal.
Renewal Policy. Certificate of Deposit accounts will automatically renew for another term upon maturity. You have a grace period of seven days in which to change or withdraw the funds without being charged an early withdrawal penalty.
Exception to Early Withdrawal Penalties. At our option, we may redeem the account before maturity without imposing an early withdrawal penalty under the following circumstances:
- When an account owner dies
- or is determined legally incompetent by a court
- or other body of competent jurisdiction.
Nontransferable / Nonnegotiable. Your account is nontransferable and nonnegotiable. The funds in your account may not be pledged to secure any obligation of an owner except obligations with the Credit Union.
FEES FOR OVERDRAWN ACCOUNTS. Fees may be imposed on each check, draft item, ATM card withdrawal, debit card withdrawal, debit card point of purchase, preauthorized automatic debit, telephone initiated withdrawal or any other electronic withdrawal or transfer transaction that is drawn on an insufficient available account balance. The entire balance in your account may not be available for withdrawal, transfer or payment of a check, draft or item. You may consult the Funds Availability Policy for information regarding the availability of funds in your account. Fees for overdrawing your account may be imposed for each overdraft, item or transaction. If we have approved an overdraft protection limit for your account, such fees may reduce your approval limit. Please refer to the Rate and Fee Schedule for current fee information.

Checking Comparison Chart

Compare Checking Accounts

Preferred Checking

Clear Card

Second Chance Checking

Minimum Opening Balance

Suggested opening amount- $25

ID Safe Choice Charge Possible

Yes

Direct Deposit

Accepted and encouraged

Dividends Paid

Privilege Pay

Available after 90 days

Overdraft LOC

Available immediately, with approved credit

ATM/Debit Card

Instant Issue

Shared Branching

Available

Free Bill Payer