Maybe you thought about making a New Year’s resolution to save more. If you did, you’re not alone. Forty five percent of Americans “usually” make a resolution, according to research from the University of Scranton. The same data suggests that only 8% of people are successful in achieving their goal. Don’t let that discourage you. It’s tax season. If you’re getting a tax refund, here are some suggestions to help you reach your savings goals.
Money Builder CD
Start with as little as $500 and add to it in $250 increments (or more) whenever you like. You can’t withdraw the money before the end of the CD term (your choice: 6, 9, 12, 30 or 60 months) or you’ll pay a penalty. That’s usually enough of a deterrent to keep you from withdrawing your money.
Money Market Account
This account has a higher minimum balance of $2,500 but gives you the flexibility to make withdrawals (no more than six per month) when you need it. You can also make deposits of any amount at any time.
Set It...and Forget It
Even if you aren’t getting a tax refund, you still have about 20 more paychecks this year! Here are some ways to save automatically:
If your paycheck is sent to the credit union by direct deposit, you can build your savings over time through automatic deposits. Ask us to transfer money to a High Yield Accumulation Account every time you get paid. You can save in increments of $10 to $500.
You can also schedule recurring automatic transfers in online banking. Sync the transfers with your paycheck schedule or any other schedule that is convenient for you. You can change or cancel the transfers at any time.
Once you start saving, you’ll find it becomes a habit. Not only will you be closer to reaching your savings goal, you’ll look forward to watching your savings grow over time. Remember to pay yourself first!