Advanced Savings Strategies

Take Your Savings to the Next Level 

You already have a savings account with enough saved that you’re asking “Now what?” Make your money work for you by making sure you’re using the best savings strategies to maximize your earnings. Consider the following strategies and use the ones that fit with your savings goals. 

Money Market Savings Account: Not all savings accounts are created equal. A Money Market savings account has higher rates than typical savings accounts, so you earn more with your money. Money Market accounts typically give higher rates on tiered balances. For example, we have multiple account options with better rates given when you have more savings in your account. This is an easy way to save more while still having flexibility to withdraw your funds. 

Savings Certificate Ladder: A Savings Certificate is a great way to put aside funds for a set period and earn more with higher dividends. You’ll get guaranteed returns when your certificate matures (this is the date you can withdraw your funds), so you’ll know in advance how much money you’ll have at the end of the term. Using a ladder strategy is opening multiple Savings Certificates with various terms, so you get a good balance of access to funds and higher dividends. 

If you have $5,000 to invest, a Savings Certificate ladder may look like this: 

• $1,000 for 12 months 
• $1,000 for 24 months
• $1,000 for 36 months
• $1,000 for 48 months
• $1,000 for 60 months 

If you have a goal to use the money for, you can use the funds when the Certificate(s) matures. If not, keep reinvesting the money and continuing the ladder! You can also calculate how much you can earn with different balances and terms to see what fits best for your goals. 

Specialty Savings Accounts: Save for big life events such as college, retirement and healthcare costs with specialized savings accounts. These accounts can help you focus your savings and give you tax benefits in some cases. 

Save for your children’s future education expenses with a 529 or Coverdell savings account. You can save over the years and then use the funds for tuition, room and board, books, supplies and equipment. It’s a great way to plan ahead before you’re hit with the cost of college. 

There are many different types of retirement accounts, so it’s important to research which one meets your goals the best. A great first step is seeing if your employer matches contributions to a retirement account. Make sure you’re taking advantage of the full benefit, if offered, by contributing the max amount that they will match.

You can save for healthcare expenses with a Flexible Spending Account (FSA) or a Health Savings Account (HSA). Both accounts have the perk of taking money out of your paycheck pretax and can only be used for medical expenses, but each has specific qualifications. Check with your employer and insurance carrier to see if you are eligible for an FSA or HSA. 

Stocks: A more complex strategy for long-term goals is to invest your money in the stock market. While this is a riskier strategy, with the right knowledge you can set yourself up for success. If you need help getting set up or have a large amount of money to invest, speak with an investment advisor for tailored advice for building and managing a portfolio.

Have more questions about savings strategies? Reach out to see how Dominion Energy Credit Union can help you save more and check out our savings calculator.