Here’s a New Year’s Resolution you can keep: Getting more for your savings.
Look at your accounts:
- Where do you keep them?
- How much are they earning?
- What are they costing you in fees?
- What benefits do your accounts offer?
You have probably heard that the Federal Reserve raising its key interest rate from a low of 0.25% a year ago five times to 4.50% in December. Will your savings and checking accounts get the same lift?
Yes, says Kenneth Chavis IV, a senior wealth manager at Lourd Murray, told Time in December. Greg McBride, chief analyst at Bankrate added: “At the speed interest rates are going up, some savings accounts are going to be earning 2% at the end of the year; some are going to be earning 0.02% at the end of the year. Which one of those you have your money in is entirely up to you.”
If your bank has done little to nothing in the past year to raise rates on its checking and savings accounts, it’s time to switch institutions. Credit unions have historically paid higher yields on every type of account. And their fees tend to be lower.
Tropical Financial Credit Union offers a variety of ways to get more for your money, from a basic savings account with a minimum deposit of only $5 to a higher-interest money market account with a minimum deposit of $2,500. The institution can help you improve your tax situation with individual retirement accounts and a health savings account.
When considering switching your savings to a credit union, consider moving your checking account, too. Are you getting everything from that account or is your bank dinging you monthly with account fees and charges?
TFCU offers Daily Rewards Debit. It has no monthly service fee, no minimum balance, no ATM fees and a free bill-pay service.
Just as important, Daily Rewards Debit credits your account 2 cents for every retail purchase. Swipe your card at the supermarket, the coffee shop, your favorite department store or a gas station and the credit union puts money in your pocket.
What you save on bank fees plus the pile of pennies earned during the month add up to a much higher yield on your checking account. Add to that your higher yield on a savings account and your new year is off to a much brighter start.
Moving accounts can be a hassle. TFCU takes the pain out of making the switch by handling funds transfers for you. Getting started is easy. Learn more about how to be a better saver in 2023 at this web page.