Saving vs. Investing

Since the pandemic began in 2020, Americans have been saving money at an unprecedented rate. An analysis by the Economic Research Department of the Federal Reserve Bank of Kansas City showed a sharp increase in savings as a percentage of disposable personal income. In dollar terms, they found that people were saving $7 of every $100 of disposable income in December 2019 with an increase to nearly $34 saved for every $100 in April 2020. Whether the reason was that people were nervous about their jobs or they simply didn’t have as many places to spend their money, this savings boost has offered new financial options for many people.

If you are now in a situation where you have extra money in your savings account, you may be wondering if you should leave it there or invest some of it.


It’s always a smart financial move to have money in your savings account for emergencies or upcoming expenses. A savings account is perfect for short-term goals and is typically a safer place for your money than an investment account; however, rates on saving accounts can be low so your money won’t grow as quickly.

Savings Account Options:

Share (Saving) This is your membership account at the Credit Union and when you maintain a minimum $100 balance, you’ll earn quarterly dividends.

All Purpose Club – This is a great option for saving for specific purposes like a vacation, wedding, property taxes, etc. Payroll deduction is a convenient way to build your account balance, and you’ll earn dividends on your account when you maintain a minimum $100 balance.

Share Certificate – You can choose from 3- to 60-month term CDs. CDs take advantage of higher yields, federal insurance, automatic renewal, and convenient dividend and maturity options.

Save to Win Certificate – Open this 12-month certificate account with just $25 and earn chances to win monthly and quarterly prize money for every $25 you deposit.


The best time to look into investing your money is after you’ve reached your short- term savings goals. Investing may include putting your money into stocks, bonds, mutual funds, or other investment accounts.

Investments follow the market, and as the market fluctuates so does your money. It’s important to remember that while your money may grow, it also has the potential to decrease. That is why investing is ideal for long-term financial goals. When you have a longer amount of time to invest, you can withstand a little more risk because your investments will have more time to recover from any downturns that may occur.

If you’re ready to invest, consider:

IRA – With a $100 minimum balance, you’ll earn a competitive rate on your account and have the option of choosing a Traditional, Roth, or Education IRA. IRAs are insured separately for up to $250,000 per member.


Luckily, choosing between saving and investing is not an either-or proposition. Depending upon your short- and long-term goals, you can split your extra money between the two.

If you have questions about saving or investing your money, we’re here to help! Give a member representative a call at 877-769-4766 or connect with a financial coach through our partner BALANCE at 888-456-2227. Your financial success is our financial success!


Close Options