Options for Saving Account Rates and Types
Traditionally, credit unions offer slightly higher interest rates on deposit accounts than banks and lower interest rates on many loans. They are able to do that because a credit union has no stakeholders. It is owned by the membership of people who have accounts open. Membership used to be restricted by occupation but has broadened to include location. If you live in a county that has a credit union, you can open an account there. Once you have opened an account, you are a voting member of the credit union and can take advantage of all their offered services.
Saving Account Rates depend on the type of account and the balance you keep in it. The types and rates vary from a credit union to the credit union, but each credit union has a selection of accounts to suit your needs and income level. For example, a regular saving account can be opened with a low minimum. That minimum may be five dollars, or twenty-five dollars, which is low enough to accommodate every member. A jumbo savings account at Pearl Harbor Federal Credit Union, as another example, incurs double the interest rate of a regular account. That account must have a daily minimum balance of $2500.00, and a balance of $100.00 in a regular saving account to incur the higher rate. If your daily balance goes below the minimum, your interest rate for that day is the same rate as a regular account.
Interest on all accounts is calculated on a daily basis and paid out quarterly. Saving Account Rates offer competitive dividends at any credit union. Savings certificates, with a minimum balance of $1000.00, also offer a higher rate than regular accounts. Other saving accounts offered usually include a Christmas savings option and a savings account program for young children. The Christmas account is set up, so you do not have access to your money until a specified date. It is a great way to keep money worries out of your holiday shopping. An account for children is designed to help them get in the habit of saving money, learn the value of money, and set financial goals.