Savings Accounts Vs. Certificates: Which Will Save Me More Money?

Minute Read

You want to maximize your savings but can’t decide whether to put your money in a savings account or invest in a certificate. Great news: Both savings approaches will reward your patience, though one may be better than the other, based on your unique financial goals. You receive greater flexibility with a savings account and usually earn higher returns with certificates.

How Does a Savings Account Work?

Savings accounts pay dividends on the money you deposit. You can access your money anytime, though your financial institution may limit the number of monthly transfers or withdrawals you can make.

In addition to our regular savings, we offer several different types of accounts that allow you to save money toward a particular goal or accrue higher dividends, including:

• Money Market
• Supplemental Savings
• Goal Savings
• Vacation Club
• Holiday Club

We also have Youth Club accounts to teach younger members.

What Are the Benefits of a Savings Account?

The advantages of a savings account include:

• Low-risk, secure way to save money.
• Easy to open and maintain.
• Ability to automate deposits.
• Steady dividend rate to grow savings.

What Sets a Savings Account Apart from a Certificate?

With a savings account, you can withdraw your money anytime. With a certificate, you must wait until the fixed period is over before accessing your funds.

Who is a Savings Account Best For?

People who want to take out money from their savings account regularly. For instance, you may have a side hustle and funnel all your earnings into a savings account that acts as an emergency fund. If your water heater breaks, you immediately want access to that money to fund the replacement heater.

How Does a Certificate Work?

You put your money in a certificate for several months to several years and earn a fixed dividend rate. You can’t access your money before the term ends without paying a penalty. The more you invest, the higher your dividend rate.

We offer a range of certificates from three to 60 months, with annual percentage yields that vary depending on how much you deposit.

What Are the Benefits of a Certificate?

The benefits of certificates include:

• High dividend rates.
• Low minimum opening deposit.
• Ability to earn even more by setting up a certificate ladder.

What Sets a Certificate Apart from a Savings Account?

Certificates usually have a higher dividend rate than a savings account.

Who is a Certificate Best For?

Someone who doesn’t need to access their money soon. For instance, maybe you do biweekly savings or no-spend challenge and save $500 you don’t need to pay your bills. You can put it in a certificate for 48 months and watch your savings multiply.

Weigh all your options and contact us today to open a savings account or certificate.