Save Smarter With Certificates

Saving up for something special like a wedding, vacation or retirement? There are ways you can grow your nest egg faster than a traditional savings account. Consider adding a certificate to your savings mix. Certificates are savings accounts that have fixed dividend rates that are significantly higher than traditional savings accounts. Plus, there is no risk! Our deposit accounts are insured by the National Credit Union Administration (NCUA), making a certificate a safe place to grow your savings.
 
If you're saving for something in the near future, then a certificate with a shorter term, such as six months to a year, might be a good option. This can help you earn more while still allowing you to access your funds relatively soon.

Short-term Goals

• Vacation: Whether you’re going on a camping trip with friends, a family vacation to an amusement park or that bucket list trip abroad, plan ahead. Add up the costs of travel, lodging, food and entertainment to estimate how much you’ll need to budget. Then, whether your trip is in a year or as little as a few months away, you can kick-start your savings with a certificate.
• Wedding: The average cost of a wedding in Wisconsin is $26,000, according to The Knot. With expenses including the venue, catering, DJ or band, photography, attire, flowers, décor and transportation, you’ll want to maximize every dollar you have. A certificate can make your cash work harder!
• Expecting a Child: Expecting a little one? While your friends and family might shower you with the necessities, opening a certificate to save up and prepare for health care costs, nursery furniture, car seats, clothing, diapers and childcare is a great idea and easy way to save.
• HOA Fees: If you live in a home with Homeowners Association (HOA) fees that you know you’ll have to pay once a year, you could open a one-year certificate to earmark money and earn extra on it! That way you will be able to come up with the HOA fees and more every time those annual fees are due.

If you’re saving for something farther in the future, you could choose a longer term such as 2- 5 years to lock in the high rate to accelerate your savings.

Long-term Goals

• Rainy Day Fund: If you find that unanticipated expenses are throwing your budget off track, start expecting the unexpected by establishing a rainy day fund! Save up a few hundred to help you cover the next time an appliance breaks, or your mechanic tells you it’s time to replace your tires. It’s a great way to reduce stress and avoid going into debt as unexpected costs arise.
• Emergency Fund: While a rainy day fund can help you cover a one-time smaller expense, an emergency fund can help you survive a longer-term emergency like job loss or illness. Many experts recommend saving three to six months’ worth of expenses to provide a cushion. A certificate can help you build that buffer faster.
• Retirement: Although you’ve probably already been saving up for retirement with 401(k)s or IRAs, a certificate can be a great low risk option to add into your mix. This can be especially useful the closer you get to retirement and the more cautious you’ll want to be with your funds.

 
Certificates offer a great way to crank up your savings, but you can also consider other options depending on your needs. If you want the flexibility to make transfers and withdrawals while still earning a higher rate, a money market might be a better fit. As your credit union, we’re here to help you reach your savings goals. View our current rates or open an account online.