Learn to Grow Your Money at St Anne Credit Union New Bedford

grow-money-new-bedfordEach year, millions of Americans look for new ways to save and grow their money. Many of the tools that are available through your local credit union can help. From credit union savings accounts to a higher interest money market account, as well as a certificate of deposit in New Bedford, all of these opportunities can be used to help increase your personal wealth without all of the risk associated with other types of investments. By putting your money into one of these accounts at your local St Anne Credit Union in New Bedford, Massachusetts, you gain the ability to earn accelerated interest and help grow your account balances over time.

What is a Money Market Account?
The best way to decide which type of account will help you to reach your goals is to learn more about savings, money market accounts and certificate of deposit in New Bedford. The first type we will look at is the money market account. The amount of interest that is earned with this type of account is higher than your average credit union savings or Share Savings account. The reason for this is simple: there are specific requirements that are necessary in order to qualify for this type of account.

For a money market account at St Anne Credit Union, these requirements include:

  • opening the account with a $2,500 minimum deposit
  • the $2,500 minimum must be maintained to enjoy the higher interest rate
  • if the balance drops below $2,500 the interest rate drops to the NOW Account rate
  • you must be a member of St Anne Credit Union in New Bedford to qualify

The current interest rates for a money market account at the time of this writing are:

  • $10,000 and under – 0.05 percent
  • $10,001 to $50,000 – 0.20 percent
  • over $50,000 – 0.25 percent

What is a Certificate of Deposit?
In the financial industry, for both banks and credit unions, a certificate of deposit is sometimes simply called a CD. Similar to the money market account, getting a certificate of deposit in New Bedford also means meeting a certain structure of criteria in order to get and maintain the higher interest rate for your investment. Members can choose to receive the interest earned on their CD account each month by check, or they can leave the earnings in the account to be compounded monthly and further increase their wealth.

For a certificate of deposit in New Bedford at St Anne, the requirements include:

  • opening the account with a $1,000 minimum deposit
  • the $1,000 minimum balance must be maintained to enjoy the higher interest rate
  • terms for this investment range between 6 months and 5 years
  • there is a substantial penalty for early withdrawal
  • you must be a member of St Anne Credit Union in New Bedford to qualify

The current interest rates for a certificate of deposit at the time of this writing are:

  • 0.30 percent for 6 month investments of $1,000 or more
  • 0.60 percent for 12 month investments of $1,000 or more
  • 0.80 percent for 24 month investments of $1,000 or more
  • 1.14 percent for 36 month investments of $1,000 or more
  • 1.34 percent for 48 month investments of $1,000 or more
  • 1.49 percent for 60 month investments of $1,000 or more

So Which Investment is Better?
The answer to this question depends on you, how much you have to invest, how long you can afford to invest it and whether or not a financial crisis or emergency comes up that would cause you to fall below the minimum balance required for either type of account. While the interest rate is higher for a certificate of deposit in New Bedford than for a typical money market account or other type of credit union savings, the requirements are more rigid and specific. With a money market account, you can always access the money that is invested whenever you need it without any early withdrawal penalties imposed.

Because the interest rate of the CD account is consistent and not variable like the money market account, you could stand to earn a higher annual percentage yield (APY) and will make more money from your investment. However, the substantial penalty that is enforced for falling below the minimum balance can make a certificate of deposit unappealing to many because the risk for loss is just too great. If you are sure you can keep the $1,000 minimum in the account according to the length of time in the terms, then a CD account is right for you. If you aren’t sure, then maybe a money market account is best.

Learn More About Savings at St Anne Credit Union in New Bedford
If you are interested in learning more about how credit union savings accounts and investment opportunities can help you to boost your personal wealth, contact St Anne Credit Union in New Bedford by calling 508-993-0011. You can also stop by our location in Southeastern Massachusetts on Union Street in New Bedford. Our team of friendly and knowledgeable customer service agents will be happy to help you choose which type of credit union savings accounts and programs will be best for you and your unique situation.