HOW AND WHEN TO DO IT RIGHT
As you’ve probably heard before, it’s important to save money – whether it’s for an emergency, retirement or your next vacation. Paying for unexpected expenses from savings is a much better alternative than using a high-interest credit card, which is often the easiest and quickest option to turn to.
Deciding on the best method to save your money isn’t always easy, but luckily Ironworkers USA Credit Union has multiple savings options for you to choose from.
SHARE (SAVINGS) ACCOUNTS
What is it?
When you became a member of Ironworkers USA Credit Union, you opened a Share (Savings) Account. The advantage of this type of savings account is that your money earns interest and is easily accessible when you need it.
Why have one?
Your Credit Union Share Account earns .10% APY when you have a minimum balance of $100. While this may not seem like much, traditional banks normally only offer between .01-.03% APY on balances of more than $10,000.
When to deposit?
You can make deposits anytime. It’s a great idea to set up automatic transfers into your Share Account during each pay period. That way you are putting away money every month without any hassle – and you won’t be tempted to “skip it just this one time.”
SHARE CERTIFICATES/CDS
What is it?
A Share Certificate or Certificate of Deposit (CD) is a deposit account that pays a higher interest rate. In exchange for the higher interest rate, your money is held for a specified period of time. Ironworkers USA Credit Union offers 3- to 60-month term Share Certificates.
Why have one?
You are guaranteed a fixed rate of return as a result of the fixed dividend rates. Credit Union Share Certificates require a minimum deposit of $500 and have rates between 1.00-3.25% – significantly higher than traditional banks’ CD rates. If you have $2,000 saved in your Certificate, at the end of the year, you will have accrued $40 interest. While this may not seem like much, every extra dollar helps. Based on 1 year rate of 2% APY
When to deposit?
Members who would like a quick return on their investment, generally payable or reaching maturity within a brief period of time like a year or less, can choose a short-term Certificate. Members who are interested in investing their money for longer periods of time will receive higher rates of return. This is a great idea if you have savings that you can afford to have “work for you.” It’s always a good time to start saving! We’re here to help you decide what your best savings plan should be.
