Use Certificates of Deposit 

A Certificate of Deposit (CD) is a type of savings account where your money has a timer on it. If you withdraw before the timer is up (known as the account’s maturity date), you’re penalized. But by keeping your money in the account for a set period (usually a few months to several years, depending on the account), you’re rewarded with a higher dividend rate. RMCU’s CDs offer up to 4.33% APY, depending on the account and term. 

Try a Money Market Account

Money market accounts make your money a bit more accessible than CDs while still offering dividend rates that are higher than traditional savings accounts. They don’t have a maturity date like a CD, so you have more freedom to move your money around when you need to. RMCU’s standard money market account does have a minimum balance of $2,500, so you have an incentive to keep money saved. And the dividend rates can be up to 1.75% APY, compared to .25% APY on standard savings accounts.  

Save Consistently 

They say that the best time to start saving is yesterday. But the important thing is to not wait for tomorrow to start putting money away. Putting aside even 5 to 10% of your income can help you find a consistent saving practice. If your expenses don’t allow you to save that much, find an amount that you can stick to and do it automatically after each paycheck clears. Don’t let the health of the economy or the stock market affect your regular savings. Right now is always a good time to save. 

Find the Highest Dividend Rates

Credit unions often beat banks when it comes to dividend or interest rates paid back to members. That’s because credit union profits get returned to account holders in the form of higher dividends on savings accounts and lower interest rates on loans and credit cards. Take some time to shop around for the best rates. Not all high-yield savings accounts are created equal. Find the best rates from the financial institution that will keep your money safe and provide top service when you need to access it. 

Choose Both Long- and Short-Term Savings

Time in the markets beats timing the markets. So even if you’re nervous about the stock market’s up-and-down swings, you might not need to be. When you’re saving consistently for a long-term goal like retirement, your money might have time to weather some dips, especially when you’re young. Everyone’s personal financial situation is unique, though. So you should seek personalized advice from a professional financial advisor when it comes to managing risk and taking care of your long-term investments. 

In general, keeping your short-term savings in a less risky account is a good idea. That’s where CDs, money market accounts and other insured, high-yield saving accounts come in. If you’re eligible, apply to open an account with RMCU and set yourself up for saving.