There are so many risks in life. When it comes to your money, you should be able to have a safe and secure way to save and grow it without worrying about anything else going on in the investment world. One way to do this is to put your money into your local St Anne Credit Union in New Bedford. Like other credit unions we do not deal with customers, but rather have members who join our non-profit organization to take care of financial services, such as checking, saving and loans. You can grow your money in a couple of different ways, either using a certificate of deposit (CD) account, a New Bedford money market account, or an IRA retirement savings program, just to name a few.
Your credit union checking account, savings and high yield interest accounts are a great way to save and grow your money. Backed by the federal government through the National Credit Union Administration (NCUA), of which St Anne Credit Union in New Bedford is a member, your deposits are federally insured, just as they would be by the Federal Deposit Insurance Corporation (FDIC) insures bank deposits at traditional banks. It is important to note that not all credit unions or banks, for that matter, are required to be federally insured by NCUA or FDIC, respectively, so it pays to ask whether or not this protection is available.
What Does the NCUA Protect?
While it is pretty clear that the NCUA, like the FDIC, protects consumer deposits at a credit union, the question is, what type of accounts are protected? Obviously your basic credit union checking account (share drafts) and savings accounts (share savings) would be covered by NCUA, but there are other types of accounts that are covered as well. Some of the accounts included in protection through the National Credit Union Share Insurance Fund (NCUSIF), which the NCUA uses to provide these services to credit unions within the program, include:
- certificate of deposit (share certificates or CDs)
- money market accounts
- individual retirement accounts (IRA)
- revocable trust accounts (RTA)
Also similar to the FDIC, there are restrictions on how much money can be insured at each NCUA backed institution. A maximum dollar amount of $250,000 per institution is allotted per member for protection under the NCUA. However, it is possible to protect more money with the NCUSIF by choosing to deposit a maximum of $250,000 at multiple institutions to increase the amount of money in your savings or growth-type financial accounts. Speak with your customer service agent at St Anne Credit Union in New Bedford for tips on how to use these restrictions to your advantage.
Creating a Savings Strategy
The first thing you want to do in order to grow your money beyond your basic credit union checking account and savings program is to create a savings strategy. Do you have a goal? Some members save money to put a down payment on a house or to buy a new car, while others save money to do home improvement projects or pay to send a child to college. Whatever your goals, make sure you have them firmly established so you will know what you are working and saving for in the long run. When you consider a certificate of deposit in New Bedford or think about putting your money into a money market account, it is important to know that these are considered low-risk and high-yield type accounts.
A New Bedford money market account is like a savings account that has rules on the minimum balance that you need to have in order to continue earning a higher interest rate. The more money you have in this account and the longer you keep it in this account without going under the minimum required balance, the more interest you will earn. A certificate of deposit in New Bedford, works in much the same way, yet it also has restrictions on the amount of time that you need to invest the money, either in periods of months or years, in order to avoid penalties and get the payoff.
The St Anne Credit Union Difference
If you are new to using a money market account or certificate of deposit, speak with your customer service agent at St Anne Credit Union in New Bedford to find out which option is best for you. It will all depend on how much money you have to invest, how long you can afford to keep it invested, and how much you need to make from investing your money. All it takes to become a member at St Anne Credit Union is to live or work in Plymouth and Bristol counties in Southeastern Massachusetts. Then you just need to join the credit union by opening a basic Share savings to have all of the other options come available to you. Stop by our location on Union Street in New Bedford or give us a call at 508-993-0011 to learn more about all of the financial services and opportunities available at St Anne Credit Union.