No worries: Safe savings options

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Growing your money is all about making tradeoffs. Sometimes it’s worth taking a chance on an investment with a potentially higher payoff. Other times you’re better off playing it safe with slow and steady growth

The safest way to grow your money is in a certificate of deposit (CD), a money market account, or even your checking and savings accounts. These accounts are all insured by the National Credit Union Administration (NCUA) for up to $250,000, so you know your money is safe. Guaranteed.

Choosing the right safe savings account is all about weighing flexibility versus payoff. So which type of account is right for you?

Here’s a comparison of safe savings options to help you earn the highest possible interest rate — even when you’re being cautious.

 

Account type

Flexibility

Payoff

Remarkable Checking

Unlimited access to money, but you have to meet monthly requirements

1.00% APY on balances up to $20,000.*

Ignite Savings

Unlimited access to money, no monthly requirements.

5.25% APY on balances up to $500, competitive rates on the rest.**

Money Market

Unlimited in-person withdrawals, $500 minimum deposit.

Up to 0.20% APY on your entire balance.***

CD

No access to money unless you pay a penalty, $500 minimum deposit with terms ranging from six months to five years.

0.75% to 0.90% APY, depending on the term.****

 

Savings with flexibility

While savings and checking accounts typically offer lower returns, the advantages are obvious. You have immediate and unconditional access to your money. Minimum balances are low, allowing easy entry regardless of your financial situation. And if you’re an OCCU member, you’ll still earn competitive interest rates compared to other financial institutions.

For maximum access to your money, our Remarkable Checking account pays 1.00% APY on balances up to $20,000* as long as you meet our monthly qualifications. All you need to do is make twelve debit card charges a month, maintain active enrollment in eStatements and complete at least one automatic deposit each month.

If you prefer to keep your savings separate from your spending money, a savings account still allows you to freely access your money (without any qualifications to meet) while earning even more interest. Our Ignite Savings account, for example, pays 5.25% interest on the first $500 you deposit and competitive rates on the rest.**


Saving with bigger rewards

A CD is a savings account that grows at a guaranteed higher rate — without exposing your money to the ups and downs of the stock market. The tradeoff is that you won’t be able to access your money for a while. CD terms can range from six months to five years; the longer the term, generally the larger the return. If you withdraw your money early, you’ll have to pay a penalty.

At OCCU, regular certificate accounts require a minimum deposit of $500. Jumbo certificate accounts require a deposit of at least $100,000 but pay higher interest rates than a regular certificate.*** CDs with bump-up options allow you to get a one-time interest rate bump if market rates increase, plus you can make an extra deposit once during your 24- or 48-month term.

If you want the higher rate of return without tying up all your savings at once, you can use CD laddering to maximize access to your money. By investing in a series of CDs with different maturity dates, you’ll always have a portion of your money available each year without penalties.

When it comes to saving, slow and steady often wins the race. Whatever your strategy, OCCU can help you meet your savings goals while keeping your money safe.

 

**1.00% annual percentage yield offered on Remarkable Checking applies to the first $20,000 and 1.00% - .20% APY on balances greater than $20,000, subject to the qualifying factors (the “Qualifying Factors”) being met during each statement cycle: i) 12 debit card transactions must clear through your account during the cycle; ii) one direct deposit or other ACH credit or withdrawal must clear through your account during the cycle; and iii) maintain active enrollment in eStatements during the cycle. If one or more of the Qualifying Factors are not met, you will receive default interest of .05% APY for that statement cycle. Automatic payment is defined as a payment pulled from a Remarkable Checking account by an outside source and excludes OCCU’s Bill Pay service. APY effective 6/01/2022 and subject to change. Fees could reduce earnings.

Foreign ATM fees charged by non-OCCU and non-CO-OP financial institutions for the use of their ATMs will be automatically credited back to your account by OCCU at the end of the statement cycle. This credit is subject to meeting the qualifying factors. Statement Cycle = first day of the calendar month to the last day of the calendar month. Example: May 1 – May 31.

**Ignite Savings account annual percentage yield (APY) and rate may change. Fees could reduce earnings. 5.25% APY on balances up to $500, 5.25%-3.45% APY on balances $500.01-$2,500, 3.45%-2.23% APY on balances $2,500.01-$5,000, 2.23%-0.85% APY on balances $5,000.01-$25,000, and 0.85%-0.15% APY on balances of more than $25,000.01. First-year earnings are based on a 12-month average. APY effective 6/01/2022 and subject to change.

***Money Market account APY & rate may change. Fees could reduce earnings. 0.15% APY on balances $500-$99,999.99, 0.20% APY on balances $100,000-$249,999.99, and 0.20% APY on balances of more than $250,000. There is a minimum opening balance requirement of $500.

****The regular certificate account and jumbo certificate account annual percentage yields (APY) & rates are current as of 5/26/2021. There is a minimum balance requirement of $500 to open the regular certificate account and earn the APY. There is a minimum balance requirement of $100,000 to open the jumbo certificate account and earn the APY. Early withdrawal penalties may apply. Fees could reduce earnings.