10 ways to use a high yield savings account to save more this year

It’s easy to think of saving as a tedious necessity — something that gets in the way of doing the things you want to do today. But saving isn’t all about sacrifice and preparing for the future. It’s also a strategy for getting the things you want in the short term.

While saving for a goal does take time, there are ways to speed up the process. A high yield savings account, for example, can help accelerate your savings so you can take action toward your goals sooner rather than later. High yield savings accounts pay a higher-than-average interest rate on your balance, allowing you to build up your savings more quickly.

Take OCCU’s Ignite Savings, which pays 5.25% APY¹ on the first $500 you deposit. It’s a great tool for quickly building up your savings toward a short-term goal, putting your savings into action, and then quickly saving up again.

Member tip: You can use our Ignite Savings calculator here to find out just how fast your savings account could grow.

Here are 10 ways you can use a high yield savings account to put your money into action and start making your plans a reality:

1. Establish a ‘sinking fund’

A sinking fund is a strategy you can use to save money for a specific purpose, like holiday shopping or buying a car — something you can’t pay for within a single month’s budget. Instead, you set aside a small amount of cash within your monthly budget. If you’re planning a trip, for example, you might set aside some or all of your monthly entertainment funds for as many months as it takes to save up the cost of the trip. By placing these funds in a high yield savings account, you’ll reach your goal even sooner than planned!

2. Tackle a home renovation project

Updating your living space can be an investment in both your quality of life and the value of your home. And the best part is you don’t need to go into debt or tap into your home equity to do it. A high yield savings account can serve as a revolving door of savings for your ongoing remodeling project; you can tap into it as you need funds, leaving the remaining balance to earn above-average interest in the meantime.

3. Make a down payment or deposit

Thinking about buying a home? Or renting somewhere new? A high yield savings account is the perfect place to stash your money while you save up for a down payment or rental deposit. The higher interest you earn will have you out the door with your new keys in hand faster than a traditional savings account.

4. Take care of kid stuff

From back-to-school shopping to your teen’s first car to saving for college, kids are great at helping you spend your money. A high yield savings account can help you plan ahead for kid-related expenses, both big and small. And if you’re a bit behind and trying to catch up, the extra interest you earn can give your savings a boost.

5. Invest in education

There are so many ways to improve yourself — and most of them cost money. The interest from a high yield savings account can help you save up for a college degree, sign up for a few online classes, take lessons to learn a new skill, or attend a workshop or conference on a topic you’re passionate about.

6. Pay down debt

People often wonder whether it’s more important to work on paying down debt or building up their savings first. The answer is that you should do both simultaneously. Paying down a credit card or loan can help you get out of debt but having money in your savings account can help you stay there. Use a high yield account to help build up your savings quickly while applying a portion of your income toward paying down the interest on your debt.

7. Plan for a big life event

While you can’t always anticipate what life will throw at you, some big events are easy to plan for. If you know you want to get married, for example, it’s never too early to start saving for the wedding. So why not use your high yield savings account to start putting your money where your dreams are?

8. Treat yourself to a new experience

Is there something you’ve always wanted to try, like a hot air balloon ride or meditation retreat? Some of the most enriching experiences in life can also come with a hefty price tag — but in the end they’re worth every penny. With the extra interest from a high yield savings account, it’s easier to plan for treating yourself to whatever it is you’ve been longing to experience.

9. Start a business

Great things can happen when you allow yourself to follow your passion. Starting your own business is a big step that can change your life for the better. If you dream of becoming an entrepreneur someday, start taking small steps toward your goal by building up funds in a high yield savings account.

10. Invest in a hobby

Hobbies can be expensive, but they can also be a tremendous source of satisfaction and joy. Use your high yield account to save up for that new tool for your woodshop, that pottery wheel you’ve always wanted, a new musical instrument, a set of skis, or whatever activity ignites your passion.

There’s no end to the ways you can use a high yield savings account. Make your plans a reality. Discover how an Ignite Savings account can help today.