Building Your Savings: A Simple Guide
March 24, 2025
Saving money may seem overwhelming at first, with all the options available—savings accounts, certificate accounts, or retirement plans. But the most important factor in saving is forming the habit. The key is to start small, whether it’s cutting back on a daily coffee or setting aside part of your paycheck. These small actions will add up over time and help you build financial security.
Step #1: Savings & Money Market Accounts
Savings accounts are the most basic option, ideal for beginners. You’ll earn interest on your deposits, though the rates are lower than other options.
Advantages:
- Easy access to funds
- Low or no minimum balance
- Federally insured by NCUA
Drawbacks:
- Lower earning potential compared to other options
Step #2: Certificate Accounts
Once you’ve built up your emergency fund, consider a certificate account. These accounts offer higher returns but lock your funds in for a set term. The trade-off is that you can’t access your money early without a penalty, but the interest earned can make it worthwhile.
Advantages:
- Higher returns
- Fixed terms that help your savings grow
- Federally insured by NCUA
Drawbacks:
- Early withdrawal penalties
- Minimum balance requirements
Step #3: IRA or 401(k) Accounts
For long-term savings, retirement accounts like IRAs and 401(k)s are excellent options. These accounts offer tax advantages to help you save for retirement. If your employer offers a 401(k) matching program, be sure to take advantage—it’s essentially free money!
Advantages:
- Tax benefits for retirement savings
- Higher earning potential
- Options to invest in stocks
Drawbacks:
- Limited access to funds
- Possible penalties for early withdrawals
Start Today
Building your savings doesn’t have to be complicated. Whether you start with a basic savings account or plan for the future with retirement accounts, every step counts. Visit us at any branch or call 888-777-9982 to learn more about the savings options available at our credit union. Let’s start building your financial future today!
Disclosures
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This credit union is federally insured by the National Credit Union Administration.
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Equal Housing Lender
