Savings

Keep Dreaming, Start Saving

When It Comes to Savings, an Emergency Fund Is Just the Beginning

You know how important it is to save for emergencies. Whether you have been making monthly transfers to your savings or simply depositing extra money when it’s available, you’ve built an emergency fund to help you stay afloat if times get tough.

Only 40 percent of Americans say they would use savings to pay for a $1,000 emergency, with most reporting they would need to turn to other methods, such as credit cards, personal loans or borrowing from loves ones. So, if you’ve managed to save up the recommended 3 to 6 months’ worth of expenses in an emergency fund, great job! You’re ahead of the curve.

Now What?

Fully funding an emergency savings account is an accomplishment worth celebrating. But once you’ve done it, it can be hard to know what to do next. You may be tempted to stop saving and start spending more. But it’s important not to let the good savings habits you’ve created go to waste. In the future, when you want to make a down payment on your dream home or take that dream vacation, you’ll be glad you kept saving.

You may also be tempted to just keep putting money in your emergency fund. But if you simply let those automatic deposits keep rolling into your emergency fund, you’ll probably miss out on opportunities to grow your savings faster. Now it’s time to explore ways to accomplish even more with your hard-earned money.

If you’re looking for smart ways to save and grow your money, a term certificate could be a great choice. Available at credit unions like USE Credit Union, certificates work like a bank’s certificate of deposit (CD) while paying a competitive credit union rate.

Once you have your emergency savings squared away, a certificate can be a great way to grow your savings faster without the uncertainty that comes with risky investments like stocks and bonds. Here’s why a certificate could be a great option as you save toward your dreams:

Higher Dividends

Unlike a typical savings account, which gives you the flexibility to withdraw funds when needed, certificates require the funds to remain in the account for a set length of time. In return for this commitment from you, your financial institution will typically pay you a higher rate.

It’s important to understand that most certificates come with a penalty if you close the account early; being able to hold the funds in your certificate until it matures is key. Since emergencies rarely announce themselves ahead of time, an emergency fund belongs in a savings account that you can access as needed, like these savings accounts from USE Credit Union.

But, for funds you don’t mind keeping out of reach for some time, a competitive certificate can pay a rate that’s many times higher than the national average for savings accounts. And that higher yield can help you get closer to reaching big financial goals, like buying a new car, making a down payment on a home or building a more comfortable retirement.

Dependability and Peace of Mind

Whether you’re relatively early in the saving process or are approaching retirement and want to protect your nest egg, you’ll appreciate the stability and predictable earnings you can enjoy with a certificate.

Like a savings account, and unlike typical investments, a certificate is federally insured up to $250,000. For most certificates, the rate is locked in for the entire term. This means that even if the stock market takes a dive, you’ll know exactly how much money you’ll earn when the certificate matures.

At that point, you can withdraw your principal and dividends to spend or save elsewhere, or you can let the certificate automatically renew and keep growing.

Lots of Options

Not comfortable having your funds out of reach for years? No problem. You have a wide array of certificate terms to choose from, ranging from a few months to many years. The longer terms typically pay the highest dividends.

It’s important to choose a financial partner that makes saving with certificates easy and rewarding, no matter how much you plan to deposit. Here at USE Credit Union, you can start earning a great certificate rate with a minimum deposit of $1,000, and our tiered dividends allow you to earn more with higher balances.

And, if you’re looking forward to retirement, our certificate options are IRA-friendly, making them a great way to add stability to your retirement savings.

Safely Grow Your Savings with a USE Credit Union Certificate

You don’t have to save up another emergency fund’s worth of money or commit to leaving your cash untouched for a decade to invest in a certificate at USE Credit Union. We have terms for every need, and our option rate certificates even allow you to take advantage of rising dividend rates. Plus, you’ll get the friendly service that only your local credit union can provide.

Learn more about USE Credit Union’s term certificates, check out our great rates and start earning more with your savings today.