You’ve worked hard to build up your savings. So you want to make sure they’re protected – and steadily growing – during today’s economic uncertainty. But right now, it may seem harder to grow your savings, especially when you want to avoid the risks that come with a volatile stock market.
Keeping your funds protected in a federally insured financial institution is a smart way to avoid market risk. And, with the right account, you can still earn a great rate. Here’s how.
You have a lot more options than just a standard savings account. To find the account that’s right for you, consider:
When considering an account, look at its annual percentage yield (APY), which is the amount of compound interest it pays in a year, as well as limitations that affect access to funds. Also, see if there are requirements or restrictions that affect your ability to earn a high APY or avoid a monthly fee.
If you’re looking for a high-interest savings account, here are some options that may earn significantly more than a traditional savings account while providing the same level of protection.
A money market account can help you earn a higher rate while giving you the flexibility to withdraw funds as needed.
MMAs aren’t ideal for people who are just starting to save. But if you already have thousands of dollars in savings, they offer a great way to earn higher dividends.
Looking for easy access and a higher yield? This may be the account for you.
A certificate is the credit union equivalent of a bank certificate of deposit (or CD). This option lets you earn a higher rate when you commit to holding your funds in the account for a set length of time (the term may be as short as a few months or as long as 5+ years).
Requirements or restrictions: A penalty usually applies if you withdraw funds before the term is up. Also, if you’d like to keep your money growing, you can leave the funds in the certificate and it will automatically renew with a new term (based on the guidelines of your financial institution).
If you’re comfortable setting your money aside for a while, your patience will be rewarded with higher dividends. And unlike other high-yield accounts, you may not need a high starting balance. Here at American Heritage, you can open one of our certificates with just $500.
Another option is an IRA certificate, which offers the benefits of a regular certificate along with the potential tax advantages of a Traditional or Roth IRA. It’s a low-risk alternative to other investment options that will keep your nest egg protected as you approach retirement.
*Annual Percentage Yield (APY): APY for balances $10,000 and greater. Maximum deposit amount $1,000,000. Limit one High Yield Savings Account per member. $10,000 minimum opening deposit. $10 monthly service fee is waived if the daily balance is $10,000 or more. Account holder may withdraw funds once per monthly statement cycle via check, transfer or withdrawal, $25 fee for each additional withdrawal per statement cycle. Fees may reduce earnings. Rates and fees accurate as of 3/27/2020 and are subject to change.