As a college student or recent graduate, stepping into the workforce is an exciting milestone. Whether you’re working a summer job or starting your first professional role, it’s important to establish a solid financial foundation. SECU offers a variety of financial products designed to grow with you over time. Here’s a guide to help you get started.
Checking Account for Everyday Needs
A checking account is your primary financial tool for managing everyday transactions. It’s where your paycheck gets deposited, from which you’ll pay your bills, and access funds for daily expenses.
Using Your Checking Account
- Daily Transactions: Use your checking account for everyday spending like groceries, gas, and dining out.
- Bill Payments: Automate payments for utilities, rent, and subscriptions directly from your checking account.
- Emergency Funds: Keep a buffer in your checking account to cover unexpected expenses without overdrawing.
How Much to Keep in Your Checking Account
- Daily Expenses: Maintain enough to cover a month’s worth of daily expenses, plus a small cushion to avoid overdraft fees.
- Emergency Buffer: Aim to keep at least one to two weeks’ worth of expenses as a safety net.
| Benefits of SECU’s Total™ Checking & Rewards | |
| Cost Savings | No monthly maintenance fees. No minimum balance requirements, One order of free checks per year. 50,000+ free ATMs nationwide. |
| Earnings | Debit cash back. Competitive interest rates. Additional interest when you open a SECU CD. |
| Convenience | Easy virtual banking. Online and mobile banking options. |
| Rewards | Credit card rewards. Combined balances for more rewards. |
With SECU’s Total™ Checking & Rewards, you get a comprehensive checking solution that supports your financial needs, rewards your spending, and helps you manage your money efficiently.
For more details and to open your account, visit SECU Maryland Total Checking & Rewards.
Savings Account for Future Needs and Emergencies
A savings account is your financial safety net and a stepping stone toward achieving your long-term goals.
Using Your Savings Account
- Emergency Fund: Save enough to cover 3-6 months of living expenses. This fund acts as a buffer against unexpected expenses like medical bills or car repairs.
- Short-Term Goals: Use your savings account to accumulate funds for upcoming expenses such as vacations, a new laptop, or holiday gifts.
- Long-Term Savings: Gradually build up savings for significant future expenses like a down payment on a house or continuing education.
Investing in Your Savings Account
- Emergency Fund: Start by saving at least $1,000 as an initial goal. Gradually increase this amount to cover 3-6 months of living expenses.
- Short-Term Goals: Set specific targets for each goal and contribute regularly. For example, save $50 per month for a vacation.
- Regular Contributions: Set up automatic transfers from your checking account to your savings account to consistently build your savings.
Whether you’re setting up an emergency fund, saving for a short-term goal, or planning for a long-term purchase, SECU’s Share Savings Account provides the flexibility and benefits you need to succeed.
| Benefits of SECU’s Share Savings Account | |
| Membership | Establishes your SECU membership for life |
| Earnings | Pays interest above the Maryland averageGreat account to build savings with automatic transfer options |
| Flexibility | Withdraw or transfer funds to/from other SECU accounts anytime without penaltyMaintain multiple savings accounts for different savings goals |
For more details and to open your account, visit Share Savings.
CD or Money Market Account to Maximize Long-Term Earnings
A Certificate of Deposit (CD) or Money Market Account is a great way to make your hard-earned money work harder for you. These accounts offer higher interest rates than traditional savings accounts and are ideal for specific financial goals.
The Role of CDs and Money Market Accounts
| Feature | Certificates of Deposit (CDs) | Money Market Accounts | |
| Interest Rates | Higher rates depending on the selected term | Competitive interest rates | |
| Terms & Access | Fixed terms (3 months to 5 years) No access until maturity (penalty for early withdrawal | Flexible access to funds No penalties for transfers or withdrawals | |
| Minimum Deposit | Varies (starting around $1,000) | Minimum $2,000 | |
| Best For | Long-term savings goals such as a car, house down payment, or post-secondary education | Shorter-term savings like emergency funds, vacations, or large purchases | |
| Additional Perks | Higher interest with SECU Total Checking | Ideal for immediate access needs |
How Much to Invest:
- CDs: Invest funds that you can afford to lock away for the term length without needing to access them. A good starting point is to use a portion of your savings that you won’t need in the short term.
- Money Market Accounts: Consider starting with the minimum deposit requirement and gradually increasing your investment as your savings grow.
With SECU’s range of CDs and Money Market Accounts, you can grow your savings efficiently while catering to both short-term and long-term financial goals.
Retirement Accounts for a Secure Future
Starting early with retirement savings is crucial due to the power of compound interest. Investing in a retirement account now ensures a secure and comfortable future. If your employer offers a 401(k) plan, contribute to it, especially if they match contributions. If no employer plan is available, consider opening an Individual Retirement Account (IRA).
SECU offers various IRA options tailored to different needs and goals:
| SECU IRA Options | ||
| Account Type | Features | Best For |
| Traditional IRA | Tax-deductible contributions, tax-deferred growth | Those expecting lower tax rates in retirement or wanting immediate tax breaks |
| Roth IRA | Tax-free qualified withdrawals | Young adults anticipating higher tax rates in the future, or who prefer tax-free withdrawals |
| Rollover IRA | Roll over funds without tax penalties | Individuals changing jobs or consolidating retirement accounts |
| Education Savings | Save for education with tax benefits | Saving for a child’s or your own future education expenses |
Get started with your retirement savings to build toward a secure and comfortable future.
Build Your Financial Future with SECU
Starting your financial journey on the right foot involves setting up these essential accounts to manage and grow your earnings effectively. SECU offers a wide variety of financial products designed to grow with you over time. By doing so, you’re building a strong foundation for long-term financial success. If you need personalized advice or help setting up these accounts, don’t hesitate to contact SECU.
Take the next step towards financial health by exploring SECU’s savings options today: SECU Savings Accounts.