High-yield savings and other tools for financial success
There are so many things we need to remember on any given day. You need to pick up eggs next time you’re at the store. School lets out early on Wednesday. Your phone bill is due next week. You need to put some money in your savings account.
There are plenty of ways to help remember these things. Shopping lists. Online calendars. But when it comes to your finances — bills, savings goals, putting your money to work — OCCU has tools to help you stay on track, even when the rest of your life is a little chaotic.
Embrace automatic deposits
Chances are if you can see money, you’ll probably spend it. If you keep a lot of money in your checking account, it can tempt you and lead to a free-spending mindset. If that money is tucked away in a savings account or CD, it creates another step to gain access to it — and you’re doing your future self a favor.
A good way to get started or boost your savings is to have a portion of your paycheck automatically deposited into a high-interest savings account like Ignite Savings. You still have access to your money if you need it, but it can be the start of something bigger — a regular savings routine. Starting with savings first is better than waiting until the end of the month to see what’s left over.
Manage your savings with ease
In this "there’s-an-app-for-that" age, you can find a lot of digital tools to help you save.
A convenient way to enhance your savings is the Savings Goals tool on MyOCCU Online & Mobile. You can establish different savings goals, like "Emergency Fund" or "Vacation," and then make deposits into them either automatically or manually. You can prioritize your savings goals or fund them all equally. The Savings Goals tool tracks your progress and gives you visibility on your progress. With that visibility, your savings goal becomes more real to work toward.
Take full advantage of retirement plans
A 401(k) retirement plan is another automatic way to save. The money comes directly from your paycheck and chances are—you won’t even miss it. If your employer offers to match a percentage of your 401(k) contributions, make sure you’re taking full advantage of it. Otherwise, you’re passing up free money.
Another advantage is that contributions to 401(k) plans aren’t taxed until they’re withdrawn, which may reduce your taxable income for the year of the contributions.** That can mean a little more money in your pocket–or savings account–come tax time.
**Consult your tax advisor for tax information.
Put your money to work
Make sure you’re getting the most interest you can on your money. Generally, keep what you need for routine living expenses in your checking account and put any excess into some type of higher-earning savings account.
Take a close look at the interest rates of your accounts. Some checking account yields can exceed savings accounts. OCCU’s Remarkable Checking® is one to consider to help put your money to work. If you can afford to leave money untouched for a period of six to 60 months, check out a certificate of deposit. With generally higher rates, you’ll earn more in the long run.
