There’s nothing quite like that feeling when you receive your tax refund in the mail – or better yet, automatically deposited into your New Bedford credit union account. It can be quite tempting to just take that money and go spend it on something that you’ve been wanting for a long time – new furniture, new clothes or a weekend getaway. While all of that is really nice, a better idea would be to take your tax refund and put it to work for you!
There are a couple of different things that you can do with your tax refund that would help you grow a nice little nest egg to put away for a rainy day. Setting yourself up for financial success can be much more rewarding than a new pair of expensive shoes or a trip to Florida in the middle of winter. It may not seem like it when you have been scrimping and saving all year long, but this windfall from the government could be a huge boost to your savings.
- EMERGENCY FUND – Studies show that most Americans are just a paycheck or two away from homelessness. Now that the economy is moving back toward recovery, it can be tempting to do away with emergency funds and things like that, but the truth is that you should always have a back-up in case something happens unexpectedly. A single person should have at least $500 in an emergency fund at their credit union savings account, while couples should shoot for at least $1000. The “rule of thumb” for homeowners and families is to put away enough to pay the mortgage or rent, along with utilities, groceries and other household expenses equal to at least one month – two if possible. Putting your tax refund into your credit union savings account could be really helpful for your emergency fund.
- PAY OFF DEBT – Nobody likes having debt hanging over their head. Consider paying down or paying off any loans that you have at your New Bedford credit union or anywhere else. Student loans, home equity loans, mortgages, car loans and even credit cards or other types of revolving debt should definitely be considered to reduce the amount of interest you will ultimately pay over the lifetime of the loan. Even if you only make a single principal payment on your loan, you could save hundreds of dollars or more. With credit cards, you could save yourself even more wasted money in revolving debt interest.
- SAVE FOR A BIG PURCHASE – Even more rewarding could be putting money away toward your savings for a big purchase, such as a new car, a house, a boat or a college education. Knowing that your money is working for you and going toward a big purchase that you want to make in the future can help you feel good about saving your money and help you get another step closer to reaching your goals. Speak with your New Bedford credit union representative about savings opportunities that can help you save toward a down payment that can even help you in your ultimate quest to get an auto or home loan in the future.
- INVEST IN YOUR FUTURE – Are you getting ready to retire or just thinking about retirement in the next 5, 10, 15 or 20 years? Investing your money into a retirement fund, credit union savings account, money market account or certificate of deposit can help you to reach your goals and guarantee that you will have the money you need in the future. Speak to your New Bedford credit union representative about ways to save beyond the basic Share credit union savings account right here at St Anne Credit Union in New Bedford.
Savings & Investment Opportunities at St Anne Credit Union
So while we talk about putting money away in your credit union savings account or other types of savings and investment opportunities, there are many members who might not be aware of all the options available to them at St Anne Credit Union. In addition to the Main Share Savings account, which is required for all members, there are other ways to save that will help you to reach your goals.
- ANNUAL SAVINGS – Join the St Anne Credit Union Christmas Club to save money for holiday shopping. Don’t spend yourself into debt – instead start putting money away in January and cash it out in October so you’ll be ready in time for all of the big pre-holiday season sales. Just $1 is required to open a Christmas Club account at your local New Bedford credit union and this type of account is continuous, which means that you can continue using the same passbook year after year. St Anne automatically transfers your Christmas Club money to your Main Share Savings account in the first week of October.
- MONEY MARKET ACCOUNT – Really watch your money grow with a money market account from St Anne Credit Union. The minimum to open a money market account is $2500 and it is what is known as a variable rate account. If your balance drops below the $2500 minimum, your interest rate will drop to that of the NOW Checking account rate, so it literally pays to keep that minimum balance in your account so you can watch your interest grow.
- CERTIFICATE OF DEPOSIT – Similar to a money market account where interest is earned and a minimum balance is required, there are still some distinct differences. A certificate of deposit or CD account at your New Bedford credit union requires a minimum $1000 balance to open the account, which must be left throughout the duration of the terms, which can range between six months and five years. The longer you leave the money in the account, the higher interest rate you will be afforded. Members can receive interest in a monthly check or can leave the money in the account to be compounded on a monthly basis.
- IRA Share Account – Saving for your retirement has never been easier! Speak with your credit union savings account representative for information about this government-sponsored retirement savings plan, which offers tax incentives that could boost your return or next year’s taxes! A minimum balance is required to open an IRA Share Account with your New Bedford credit union, but it is only $500. Get started today saving for your future!
Where to Open a New Bedford Credit Union Account
Stop by St Anne Credit Union in New Bedford to open up your first credit union savings account to become a member – or speak with a representative to increase your financial savings opportunities with one of our certificate of deposit or money market account opportunities. St Anne Credit Union invites individuals or couples who live or work in Plymouth or Bristol counties in Southeastern Massachusetts to join with a basic credit union savings account. Contact our local office in New Bedford to find out more about all of the opportunities available at this popular New Bedford credit union.