Are you a Scholarly Saver?
Getting the best return on your Savings is important. Different accounts give you different benefits and restrictions. Here are some of the common accounts used for savings.
- Savings Accounts- Used for short-term savings. Higher rates than Checking accounts, but lower than some other options.
- CDs-Used for short and mid-term savings, typically 6 months to 5 years. Better interest than savings accounts, but penalties for withdrawing it early.
- IRA- Used for long-term retirement savings. These may or may not offer higher savings than a CD, but they are pre-tax, which means you do not pay the income tax on funds deposited until you take them out of the account. There is a penalty for early withdrawals. There are also post-tax Roth IRA accounts available.
For more information on opening one of these accounts, please stop in to see our Certified IRA Specialist or a CJCU Staff Member!