- Surveys show nearly 70% of Americans could be earning more interest from their savings.
- High-yield offerings such as Certificates of Deposit (CDs) and Money Market accounts make it easy to earn competitive interest on savings without risk.
- Young adults can boost their savings early by taking advantage of high-yield offerings, and SECU’s Virtual Financial Center makes it easy to level up your savings fast.
What’s new: Despite many banks offering higher interest rates, most Americans are not using high-yield savings accounts. The reason? Most people don’t realize the major impact that saving a little bit now can make in the long term. The same survey uncovered some of the factors that hold people back from reaching their financial goals.
If you’re like 70% of middle-income Americans, then your savings aren’t accruing as fast as they could be. Many financial institutions, SECU included, are offering members the opportunity to earn 5% or more in interest on their savings. In this blog, we identify three barriers that could be preventing your savings from reaching their full potential. Plus, we demonstrate just how easy it is to build a strong financial foundation with SECU at your side.
We understand that life and debt can quickly become overwhelming, especially when inflation and student loans affect every aspect of your budget. Fortunately, there are many ways to regain control of your expenses. SECU can help you find the best solution for you.
Many people cite time as their most significant barrier to getting their spending under control. When money is limited, successful budgeting needs careful planning and regular review. But many young families think they simply don’t have time to devote to careful budgeting, and for college and graduate students, making it to class is tough enough.
However, getting your finances on the right path doesn’t have to be a long and stressful process. In fact, once you start, you’ll likely find that you regret not starting sooner.
SECU members can quickly access high-yield savings in the SECU Virtual Financial Center (VFC). Non-members can also join and begin in a few minutes. You can also stop by a local branch if you prefer a more traditional banking experience.
Challenging financial situations don’t make us sweat. As a community-focused credit union, we know that progress is not linear. In fact, many young people enter adulthood without a firm financial foundation. That’s why SECU invests in financial education and offers free financial counseling.
If saving money feels impossible, schedule a financial wellness checkup to find a solution. In a 30-minute chat, we learn about your money problems, like paying back student loans or affording insurance amidst inflation. Then we help you make a financial plan that fits your needs and goals.
Do you know what interest rate your savings earn? Chances are it’s below 3%. If that’s the case, your savings could be earning a lot more through higher-yield products like CDs.
Just 19% of people earn over 3% interest on their savings. Create a savings timeline to provide structure and clarity to your long-term goals while helping you stay accountable. Choose specific dates to review your progress and consider looking at CD rates or money market options during these times.
Plus, as your goals change, you’ll likely find that different savings products suit your needs better. As a young adult, a short-term CD can be a great option to build up savings. Later, as you look at making bigger purchases or starting a family, you may find it’s time to upgrade.