Experts say that once a household has over $1,000 in savings, it should be moved into a higher-earning account. The question is, which type of savings works best with your financial goals?
With Kelly Community, every member begins with a standard Share Savings account. While this account earns competitive dividends, with no monthly fees and flexible access, it won’t yield as much return as a Money Market account or a Share Certificate.
What’s the difference between a Money Market Savings account and a Share Certificate?
A Money Market account provides you with flexibility similar to a regular checking or savings account, but with higher dividends. A Share Certificate allows you to earn the most with your money, but your money is locked away for a set term. We’ve laid out the benefits of each account through Kelly Community.
Money Market Savings
- Earns a higher yield than a Share Savings
- Lose the penalties for accessing your money*
- Clear up to 6 transfers/withdrawals from your account per month
- Dividends calculated daily and paid monthly
- No set terms
*Balance must remain at $2,500 minimum to avoid fees.
Money Market Savings earnings are based on a rate-tier relative to the minimum balance. It is important to consider the minimum when making your decision.
If you want to start earning more interest, while still having the ability to withdraw money on short notice, you may want to consider opening a Money Market Account.
- Highest rate of return
- Low deposit of just $1,000
- Special rates for kids (Kidicate Certificates)
A Share Certificate allows you to make the highest investment with your money in a savings account. Your money is locked away for a set amount of time, and once it reaches maturity, you’ll receive your initial deposit back, plus all of the interest it has earned.
If you have the ability to set aside a sum of money for a length of time without touching it, and want to earn the most from your investment, you should explore opening a Share Certificate account.
Other Types of Savings – Christmas Club and IRA’s
There are also other options when it comes to saving for a financial goal with Kelly Community. Once you have defined your goal, a representative can direct you to your best options.
If you would like to prepare early for the holidays, a Christmas Club account might be the perfect option. There is no minimum balance, monthly deposit minimums, or monthly fees, and you can breathe a little easier at the end of the year.
It’s also important to begin preparing for retirement at an early age. With an IRA, you can make a tax-deferred contribution to your future, while experiencing the convenience of flexible terms and deposits.
Still have questions?
Contact a representative to discuss your financial goals and we’ll help you find the best savings account for your future.