When it comes to saving for important events or purchases, you should always try to maximize your saving potential. If you want to plan ahead, your credit union may offer a special savings account that earns a higher interest rate to help you get to your savings goal. They also provide you an incentive to be disciplined in your saving by not allowing you to withdraw the money for a certain amount of time in order for you to receive the higher interest rate.
- Customized Savings
After choosing your goal and determining how long you want to save for, most of these special savings accounts let you create a name for each account to easily measure your savings progress:
- Christmas or Holiday Gifts
- Summer Vacation
- Property or Income Taxes
- College Tuition
- Down Payment for a Home
- You'll Be More Inclined to Save
After you select your maturity date for the account, for example a 12-month term, your money and dividends will grow over the course of a year. To ensure you are putting money away for your special purchases, pay yourself first through payroll direct deposit or automatic transfers to your account.
Special savings accounts help you not only be a saver, but a planner. This way you can avoid getting into debt with interest accruing methods (such as personal loans or credit cards) for events such as the holidays, graduations, taxes, etc.