Whether you are a kid saving birthday money or an adult managing your finances, when you need to keep money somewhere because you don’t have plans to spend it, you either put it in a Piggy Bank or open a savings account.
In principle, it is generally easier to pay daily expenses with cash or a DECU Debit card from your Checking Account or by using the DECU Digital Banking App.
But for a dedicated place where money is held aside overtime to meet short and long-term financial goals that you set and fulfill with patience and consistency, one easy solution is a DECU Savings Account.
To accomplish this, DECU offers several types of savings accounts and finding the one that’s right for your financial needs depends on your specific goals.
Whether you are weighing the pros and cons of where to hold your emergency fund, putting away money for a house, or looking to make your child’s first deposit opening a DECU Savings Account is a steady and secure long-term pursuit, where value accumulates over time.
Knowing how the various savings account options compare can make it easier to select the right place to keep your money.
Set Your Goals
First, let’s examine the bare facts: Everyone needs an emergency fund.
Luckily a DECU Prime Share Savings Account makes a perfect place to stash your emergency fund, easily holding a reservoir of cash to cover 3-to-6 months of bills, expenses, and either rent or mortgage in the complete or partial absence of physical income.
- $25 minimum deposit
- Unlimited monthly withdrawals
- No monthly fee
A less-than-top interest rate means this isn’t how you fund your retirement, but quick access to a lump sum will outweigh most disadvantages if and when your bathroom suddenly floods or your transmission needs a replacement.
With luck and a good maintenance schedule, you might never need money for crisis intervention or catastrophic repairs, but your emergency fund, once built, will be there for you when you do.
For your emergency fund, we recommend DECU’s Prime Share Savings Account, with a minimum $25 deposit to get started.
Live With Interest
For life beyond emergencies, a DECU Money Market Account that rewards larger deposits is the perfect answer to the question: What should be my next financial goal?
A DECU Money Market Account is perfect for people who want to earn a higher interest rate on their savings but still keep their money access options open.
Money market accounts offer the stability of a regular savings account in combination with some of the features of a checking account.
A DECU Money Market Account pays an Annual Percentage Yield, or APY, with interest at higher rates for savers with higher balances. The more you have, the more your APY.
- No minimum or average daily balance required
- Unlimited withdrawals and no monthly fee
- Tiered dividends
Health Comes First
A DECU Health Savings Account (HSA) is a regular savings account, but it can only be used for health-related expenses. Eligibility is restricted to people who are enrolled in a High Deductible Health Plan (HDHP), and there are tax advantages to having one.
Opening an HSA makes sense if you have a singular purpose for saving money. In this case, if the deductible portion of your out-of-pocket health care costs are high because your monthly insurance premiums are low.
- HSA deposits aren’t subject to federal income tax, and account earnings grow tax-free
- Unspent HSA funds roll over at the end of the year for future health expense availability
- Many expenses qualify, to include a range of medical, dental, and mental health services
Savers contribute funds to an HSA to be used for medical costs that HDHPs don’t cover. These funds are not subject to federal income taxes at the time of deposit.
When withdrawals from an HSA are used to pay for qualified medical expenses not covered by an HDHP, the amount withdrawn will not be taxed.
Generally, HDHPs are best considered for young, healthy savers who do not expect high regular medical and care costs, except in an emergency.
Ready For Commitment
For DECU members with long-term goals that stretch out over the horizon, there is a savings account for you, too.
A DECU IRA/Share Certificate requires a higher level of initial savings to get started and pays better interest. It rewards you for committing to a longer-term with higher dividend rates and a higher APY, depending on your balance and term.
The minimum deposit for a 3-month certificate is fixed at $5,000, and certificates are available at regular intervals up to 60 months. There is a penalty for early withdrawal, so this kind of account is generally best for savers who won’t need their money immediately and would like to earn a higher APY than traditional savings accounts.
- Minimum deposit $500
- Minimum deposit to start 3-month certificate is $5,000
- Early withdrawal penalty on all certificates
- Maturity from 3 to 60 months
- Dividends compounded and paid quarterly
Pork Belly Futures
Saving money isn’t overly complicated, but choosing where to put your savings can be a complex adventure. Are you saving for a specific goal, maybe a car or even a new smartphone? Do you need a large sum at your fingertips? How much can you save every week?
Whatever your goals are, DECU has a savings account for you.
But what about your kids? What’s the best place for young savers to keep and track their money?
Experts agree that until a child is at least six years old, the best way to teach about money and saving is cash and a reliable Piggy Bank. Keep the coins and bills in a semi-transparent storage container that can be loudly shaken but not easily opened. Let your kids watch their money grow.
But for older kids, and with your guidance, a DECU High Yield Savings Account can be the perfect place to start learning about money.
Best of all, the limits placed on other savings accounts for a minimum deposit, withdrawals, and average daily balance are gone. Young savers can even get a personal Debit card with online access.
- No minimum deposit required
- No daily balance required
- Tiered dividends
- No monthly fee
- Unlimited withdrawals