Deciding where to keep your money is a big deal, and it can feel overwhelming to make the right decision. If you’re looking for your money to make a little money, knowing which accounts to use is essential. At Carolinas Telco Federal Credit Union (CTFCU), we want to provide you with the knowledge to help your money work harder. This blog will break down the differences between our Rewards Checking account, High Yield Savings account, and Share Certificates to help you make an informed decision.
What is a Rewards Checking Account?
If you want to earn more on your checking account balances, then our Rewards Checking might be the right choice. This account offers dividends up to 2.51% APY* on the first $15,000 and 0.20% on balances above this amount. To qualify for this rate, you must conduct at least 12 debit card purchases monthly and maintain a minimum average daily balance of $2,500 to avoid a $2.00 per month service fee. Our final qualification asks our account holders to help us reduce paper consumption by signing up for e-statements and paying at least one bill electronically through bill pay or an automated clearing house (ACH) each month.
What is a High Yield Savings Account?
A CTFCU High Yield Savings (HYS) account is perfect for those who tend to carry higher balances in a regular checking account but want to earn a higher interest rate. You can enjoy unlimited access to your funds at the ATM while conducting transactions within our online banking platform or when making transfers at our branches. However, keep in mind that overdraft transfers and ACH transactions are limited to six per month. Each transaction above six will incur a $1.00 fee per occurrence. Also, HYS requires a minimum average daily balance of $1,000 to avoid a $15 service fee. Here’s the best part, our tiered interest rates allow you to earn more as your account balances grow. Right now, you can earn up to 1.76% APY* on deposits of $100,000.01 or more. Our High Yield Savings account is perfect for those wanting to set funds aside for emergencies or larger financial goals while maintaining quick access to their money.
What is a Share Certificate?
A Share Certificate, more commonly known as a Certificate of Deposit (CD), is an account that allows you to earn a higher interest rate by agreeing to leave your money with us for a predetermined amount of time. A CTFCU Share Certificate enables members to deposit $500 or more at terms from 6 to 48 months. While there is a fee for early fund withdrawals, your rate is guaranteed, and the amount you earn increases if you opt for a more extended period. A CTFCU Share Certificate with a 48-month term has an APY* of 2.33%
Things to Consider When Making Your Decision
The first thing to consider is interest rates. Are they fixed or variable? Which rate is highest based on the money you want to place in the account? The easiest way to compare our rates is by checking our savings rates page. Another important consideration is how much access you need to your funds. Some accounts limit when you can withdraw your money. Check out the table below for a quick synopsis of the features and benefits of each account.
Looking for more information or want to dive deeper into your options? We’re happy to help! Contact us today to discuss your options.
*All rates mentioned in this blog are accurate as of 1/12/2023 and can change without notice. To find the latest rate information, please visit our rates page.