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With St. Patrick’s Day around the corner, you’ve surely seen lots of green and gold in stores, offices, and anywhere else you may have visited in the last few weeks. Seeing these colors and images, like pots of gold, can call into question your own “gold.” How is your progress towards achieving your savings goals?

No matter your stage in life, it’s never too early to begin saving! Whether it’s an emergency fund, saving for goals like a car or a first house, or developing your retirement fund, there are a wide range of strategies and products you can use to meet your savings goals.

The Right Savings Strategy

Before jumping headfirst into a savings account or product, you first need to analyze your goals. Is your aim to save for a down payment on a house, or to build an emergency fund? Your goals will inform both the right strategy and products for you to use.

Short-Term Goals

A short-term goal is something you hope to achieve in a shorter timeframe, generally anywhere from a few months to a year. Some common examples of short-term goals might be saving for a vacation or buying a new phone. Short-term goals typically carry more urgency than a long-term goal.

Long-Term Goals

Long-term goals are something you aim to accomplish anywhere from two years on and beyond. A retirement fund is a perfect example of a long-term goal. While these goals may not be as imminently on your radar as a short-term goal, you still hope to achieve them and work towards them regularly.

You’ll be able to successfully achieve your goals, no matter their timeframe, through budgeting. Remember to have a defined budget that you regularly assess month to month. The 50/30/20 Rule is a great budgeting strategy you can use to remain disciplined and consistent with your finances.

The 50/30/20 Rule

With the 50/30/20 Rule, you’ll want to designate 50% of your monthly income towards your needs—this includes your rent or mortgage, groceries, and any other necessities. 30% should then go towards your wants, like entertainment spending, while the remaining 20% should go into your savings. This 20% will help you save for your financial goals!

As with the 50/30/20 Rule, or any budget you decide to use, it’s crucial to review your finances month to month. You may find that you’ve been spending too much on unnecessary purchases, or may even be able to put more money away into savings. Through regular check-ins with your finances, you’ll be on the right track to meet your goals.

Explore Savings Products with American Heritage Credit Union

We’re proud to offer a variety of savings products to meet the unique needs of our members! It’s our goal to help ensure you’re meeting the milestones you hope for, and our products are the tools that can help you do exactly that. Let’s review our different savings products, as well as the benefits and impact of each.

Standard Share (Savings) Account

When you become a member of American Heritage, you’ll automatically open up a Share Account. This is a traditional savings account where you’ll be able to easily withdraw and deposit funds, as well as earn interest based on the amount of money in your account. This account is called a Share Account because it represents your ownership and financial share in the credit union.

A Share Account is a great start and option for a savings product, especially for younger members and students. This type of savings account has a low minimum balance requirement of $15. However, if you’re hoping for a higher return on your funds, a Share Account may not be the best option. Earnings will help you make the most with your money and will be more present with our other savings offerings.

Money Market Account

A Money Market Account is a step above a standard savings account. This account is a good option for you if you have a higher balance to deposit and are looking to earn dividends on your money. A Money Market Account also contains the flexibility you’d enjoy with a typical savings account.

You’ll need to maintain an account balance of at least $2,000 in a Money Market Account. To earn higher dividends than a Share Account, you’ll need to have a balance of $25,000. While this may seem like a high amount, it can easily become a goal to strive for. You can start with a Share Account and build up your funds until you meet that minimum balance! And eventually, you may even be able to move into the next type of account, a High-Yield Savings.

High-Yield Savings Account

Beyond a standard Share and Money Market Account would be a High-Yield Savings Account. If you’re hoping to earn dividends on your money, this is the perfect savings account option for you. This account will ensure you’re receiving the highest earnings rate compared to our other savings options.

To open a High-Yield Savings Account with us, you’ll need to maintain a balance of $10,000 or more. Like a Money Market Account, this may sound like a high bar to clear, but it can easily become a goal to work towards. And remember, the more money in your account, the higher the return you’ll receive through dividends as a reward for your hard work!

With a High-Yield Savings Account with American Heritage, you’ll receive an earnings rate that’s higher than the national average. This type of savings account is a perfect option for something like an emergency fund. You’ll enjoy a higher earnings average while still maintaining flexibility to access your money when needed.

Certificates

You may also have interest in Certificates. While these are a type of savings account, they work a bit differently compared to a Share Account or High-Yield Savings. With a Certificate, you’ll deposit a minimum amount of money for a set period of time, ranging anywhere from a few months to several years.

Certificates with American Heritage have terms that range from 3 months to 5 years. You will need to deposit a minimum of $500. It’s crucial to remember that, unlike other types of savings accounts, there can be penalties if you need to access the funds in your certificate before its term is complete. Make sure that your goals and intent in using a Certificate align with the timeframe in which you hope to accomplish these milestones.

Both short-term and long-term goals can be achieved using Certificates. A family vacation for next summer may be well-suited for a 12-month Certificate, while saving for a down payment on your first home could work better with a 5 year Certificate. You can explore our Certificate offerings here.

Be sure to check out our Savings Accounts page to review all your options, as well as our Learning Center to use budgeting worksheets and calculator tools. These resources can help track your progress and establish timelines with your savings. No matter your goals, American Heritage is here to help you!