by Emily Hechler 
Most people can agree that saving money is a good habit to develop. Many financial institutions offer a variety of savings accounts and products. But what are the differences between these accounts? What is the purpose of so many accounts? Here is a list of common savings accounts we offer and how you can best use them. Plus, we’ll throw in real examples of using these accounts.
Primary Savings
Primary Savings accounts are a great place to start building your savings. At credit unions, members must have an active savings account. This account gives you the basic financial tools you need, including access to digital banking and more than 30,000 ATMs across our shared branch network. Plus, you earn a yield on your funds in the account every year.
A Primary Savings account is best for:
- If you’re starting to create an emergency fund that you can access quickly, this is a great option.
- People just starting to save money can use this account as a general savings fund.
Helpful hints:
- Primary Savings accounts with us and other financial institutions generally have low interest rates.
- I use this account for my general savings that I don’t have tied to a goal.
RollUp Savings
RollUp Savings accounts are designed to help you save money without extra effort. With each purchase, we round up to the next dollar and put the change in a RollUp Savings account. In addition, the funds in this account earn interest to grow your savings even more.
A RollUp Savings account is best for:
- People who use their debit card regularly for a large number of purchases, even if the purchase totals are small, will benefit from this account.
- Those who like to round to the nearest dollar when budgeting will like this account. You get to keep the change from your purchases, putting money back into your account.
Helpful hints:
- A higher interest rate is earned for the first $250 in the account.
- This is a great way to find “bonus” money when you need it.
High Yield Online Savings
High Yield Online Savings accounts are available for members with an active checking account. With High Yield Online Savings, you can transfer money from your checking account into this one through online and mobile banking. This account earns a higher yield than the national average.
A High Yield Online Savings account is best for:
- Savings funds or goals in the long-term are ideal.
- This account earns more interest without sacrificing liquidity.
Helpful hints:
- This account requires eStatements to be set up. You don’t need to be tech-savvy to set this up.
- I use this account to save for my next car down payment, even though I don’t know when I’ll purchase my next car. When I’m ready, I can quickly transfer the funds to my checking account to make my purchase.
Health Savings Account
These accounts are for paying for health expenses like doctor’s office visits, prescriptions, long-term insurance, and more. This account has a dedicated debit card to use for your health expenses. In addition, the money in this account is pre-tax, which can help you save more during tax season. You can fund your Health Savings Account by payroll deduction, electronic transfers, or in-branch deposits.
An HSA is best for:
- This account is great for those who need to cover out-of-pocket healthcare expenses.
- Save for your future medical expenses tax-free with this account.
Helpful hint:
- The funds can be invested once minimum balances are met.
Holiday Savings
The holiday season often leaves many with substantial credit card debt. A great way to avoid the financial strain of the season is to open a Holiday Savings account. With this account, you can contribute funds throughout the year. In the fall, the funds from this account are automatically transferred into your checking account. That way, you have access to a stash of money just in time to spend on your holiday shopping.
A Holiday Savings account is best for:
- People who are serious about budgeting their holiday expenses will benefit from this account.
- People who want to set it and forget it to save will have funds that are dedicated to the holiday season later in the year.
Helpful hints:
- You aren’t required to use these funds for holiday shopping. This is just how the account was designed, to help you manage this expensive season.
- I automatically contribute $75 to this account each month. When the holiday season approaches, I’ll have around $700 saved!
IRA Savings Account
An IRA Savings Account helps you save money over time for your retirement. After you’ve been contributing to this account for a while, you can open the long-term savings product of your choice. This product will be opened with the money you previously saved, so you can earn higher dividends faster.
AN IRA Savings Account is best for:
- Those who want to start saving for retirement but aren’t sure where to begin.
- People who have money that they can consistently set aside for retirement savings.
Helpful hint:
- This fund serves as a holding place for your retirement contributions until you’re ready to invest them. The funds won’t earn investment-level returns until they are moved into an IRA certificate or another long-term investment product.
Certificates of Deposit
A Certificate of Deposit, or CD, is a special savings product to help you save money fast. When you open a CD, you choose your savings term, which can range from 3 months to 5 years. Your interest rate is locked in, and your savings compound each month. At the end of your term, you can access your stash of cash or renew your CD to save more.
A CD is best for:
- People who can set aside a specific amount of money for a set period and want to earn a higher, fixed rate in return.
- Those who want a predictable, guaranteed return and like knowing how much interest they’ll earn over time.
- Savers who prefer a stable, low-risk investment option that isn’t affected by stock market fluctuations.
Helpful hint:
- Withdrawing your funds before your term is matured will result in a fee.
Ready to Open an Account?
Having a savings account is key to keeping you financially responsible. Plus, many accounts grow interest, allowing you to grow your money as a reward for not spending it. Whether you’re saving on everyday purchases, saving for the holidays, or saving over time for retirement, the right savings account will help you achieve your goals. Whatever your savings needs, come to Alltru to get started.
