Savings Strategies for the New Year
Savings account
A savings (aka “share”) account is a secure place to store your money for short- or long-term financial goals. Most financial institutions offer savings accounts at no or low cost, with easy access and liquidity. This makes them a good choice for holding your savings and for building an emergency fund. One key drawback, though, is that savings accounts tend to have lower dividend rates when compared to other savings options.
When opening a savings account, choose one that offers competitive rates and has little or no fees. Open your account online Member Reward - Alpena Alcona Area Credit Union (aaacu.com)
Share certificate
A share certificate, also known as a certificate or savings certificate, is an insured savings account that typically has a fixed dividend rate through a fixed date of maturity (term). Share certificates offer a low-risk investment with higher dividend rates than typical savings accounts.
You’ll need to meet some basic requirements when opening a certificate, including a minimum opening balance and a commitment to keep your money in the account for the full term.
When opening a certificate, you’ll be given a choice for the maturity term, which typically range from three months to five years. In general, certificates with longer maturity terms will earn a higher rate.
If a certificate sounds like the perfect choice for you, stop by today to learn more.
Dividend-earning accounts
Consider exploring dividend-earning accounts to take your savings to the next level. These accounts, which include money market accounts, offer higher interest rates in exchange for a fixed-term commitment.
As with share certificates, you’ll need to meet an opening requirement and maintain a minimum monthly balance in your dividend-earning account. On the plus side, these accounts do offer some liquidity, which can include check-writing capabilities.
[Looking to open a dividend-earning account? At , we offer [Money Market Accounts and Share Draft Accounts] to help you optimize your savings without compromising on convenience.]
Saving tips
- Set up automatic monthly transfers from your checking account to savings account.
- Set clear goals for both long- and short-term savings.
- Create a timeline for your savings.
- Build an emergency fund with three-to-six months’ worth of living expenses.
Make this the year you master your savings! Use the tips here to choose the perfect place for your funds and get your money working for you!
* Rates are current at the time of writing. See website at www.aaacu.com.
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