Your ideal financial future should always start with a plan – one that helps you reach your money goals in a safe and rewarding way. While traditional savings accounts are a great foundation, there are several financial products that generate extra interest, which leads to more funds for your goals.
From keeping up with economic changes to managing your everyday expenses, choosing the right place for your funds builds financial confidence, and Elements is here to help find the best options for you.
Deposit Accounts to Grow Funds
Our financial experts work with members every day to help make the most of their money. If you’re saving for something special or just looking to grow your stored funds, consider these insured deposit strategies:
High Yield Savings Account (HYS)
A High Yield Savings Account is a savings account that pays you a much higher interest rate than a traditional bank savings account, helping your money grow faster. Many people keep 1-2 months of expenses in a regular checking and move the rest to a high-yield savings to earn more interest. These accounts are usually FDIC or NCUA-insured, easy to access, and perfect for both short-term and long-term goals.
Best for:
- Emergency savings
- Short to mid-term goals
- Members who want flexibility and growth
Certificates & Certificate Laddering
Certificates are savings products where you lock in your money for a set time, or terms, in exchange for a higher rate than a regular savings account. Certificate laddering occurs when you use several certificates with different terms to earn higher interest while also getting some of your funds back on a regular basis.
For example, instead of putting all your money into one certificate, you could split your money into several certificates. As each certificate matures, you can either take the money out or roll it into a new, longer certificate.
Laddering your certificates can give you a better average interest, protects you from constant rate changes, and give you better access to your money without paying early-withdrawal penalties.
Best for:
- Long-term savings
- Members who don’t need immediate access to funds
- Those looking for predictable returns
Money Market Account
A money market account is a deposit account that combines features of both savings and checking accounts. These accounts often have higher interest rates than regular savings accounts, especially for larger balances.
Money market accounts allow limited check-writing or transfers, making them more accessible than certificates while still helping your money grow.
Best for:
- Emergency funds
- Short-term savings
- Members who want higher earnings with easier access
Sticking to the Plan
A deposit strategy is a plan for how you’ll use different savings tools to reach your goals. It’s important that this plan reflects your individual desires.
Use these additional tips when using any deposit strategy to keep your money working for you:
- Define your goals. Decide what you’re saving for and when you’ll need the money (emergency fund, short-term purchase, or long-term goal). No matter what you’re hoping to achieve, listing out your goals can give you a clear picture of what you’re working towards.
- Pay yourself first. Set up automatic transfers to savings or investment accounts on payday to stay consistent on your goals.
- Save windfalls and raises. Make sure to deposit your bonuses, raises, tax refunds, or family gifts into a savings account so the money doesn’t get spent without a plan.
- Review and adjust, as needed. Life changes, and so can your strategy. Check in on your accounts periodically and adjust as your goals or financial situation change.
Other Ways to Earn
Here are a few other ways to get rewards for your money:
Cash Bonuses: This is an incentive that banks or credit unions give members that open a new account or use a certain service. Most times the bonus is tied to specific requirements, such as setting up direct deposit or depositing money in the account before a certain date. This method allows you to earn extra funds on top of the funds you’ve deposited.
High Interest Checking: You’ve probably heard of a Basic Checking Account, used for everyday transactions. A High Interest Checking Account function like regular account for daily transactions, but it also pays you dividends.
Wonder how much you could earn? Use our High Interest Checking calculator at the bottom of this page to see your potential earnings.
Have questions or need help deciding which account is best for you? No worries! Our credit union experts are always here for you. Contact Elements Financial for support in all aspects of your financial life.
