When you choose a financial institution, you're choosing more than just where to keep your checking account or where to finance your car from. When considering where to do your banking, it's also important to look at where and how you choose to save your money.
When you choose to deposit money in your local credit union, you're actually helping other members of your community. This is because when you deposit your funds into a credit union, the credit union can take those funds and lend them out to other members of the community who might not qualify at traditional lenders. In exchange, the credit union will typically reward you with a higher dividend (or interest) on your savings.
There are lots of different types of savings accounts available at credit unions that can help your money work harder for you. Two of the most common savings account types are share certificates and money market accounts.
A share certificate is a type of savings account that has a fixed dividend (usually higher than a regular savings account) and a maturity date, or a predetermined length of time where your funds cannot be withdrawn without a penalty. A share certificate is very similar to a bank's certificate of deposit (or CD).
A money market account is also a type of savings account with a higher dividend. Unlike a share certificate, there is no set length of time determining when funds are available, but they do have a limit to the number of transactions allowed each month.
If you'd like to learn more about the savings products available at Towpath Credit Union, visit us online, stop by a branch, or contact us.