4 Ways to Bolster Your Savings This Summer

For those who are still keeping their conventional jobs without pay cuts, staying at home means fewer expenses. It is easy to spend when keeping costs low, especially when loaded with offers through your emails and socials. 

However, it’s a more intelligent move to save more so that you can handle the uncertain future.

You have the option to save at a slow and steady pace. Consistency typically pays off when it comes to finances. But, on the other hand, you can also save at a more rapid pace. With hard work and self-confidence, aggression can bring you success as well.

Below are a few ways you can bolster your savings.

Save in a Credit Union

Different from banks, people who put their money in a credit union are members and shareholders. That means members will get back most of the profits, like how shareholders benefit from a corporation.

Credit unions offer better rates for savings accounts and lower interest rates for loans. Moreover, these facilities waive some fees that regular banks enforce. If there are unavoidable fees, these would be much lower than bank fees.

Save in a High-Interest Account

People usually aim to shop for the best products, reading as many reviews as possible. Likewise, it would be best if you also shopped around to find the best savings account. 

Several comparison sites analyze savings plans detailing comparative statistics. Just like buying other things, there can be a stark difference between products.

Deposit savings in Your Expenses

Careful budget planning can result in some savings in your expenses. Make an effort to deposit every single saving into your savings account. 

For instance, most probably you save gas by staying more at home. Transfer these unexpected savings into your deposit account. Small regular deposits will snowball into huge savings.

Generate Side Income

Less traveling to and from work means more spare time. You could use it to do work on the side. Today there are more online jobs than ever. 

The best thing is that you can work remotely. Working in pajamas may now be the norm in whatever job you’re doing!

In addition to these four main ideas, there are many different ways you can boost your savings. Thorough research can give you several comprehensive options. 

No matter what choices you make, living a frugal life will always give you more savings. Saving slowly and consistently will ensure a steady increase in your fund. 

However, you can also bolster your savings faster by looking at some options in the more aggressive plans.

The Top 5 Benefits Of Joining A Credit Union

The Credit Union National Association reports that over 96 million Americans belong to a credit union instead of, or in addition to, a traditional bank. 

With so many people jumping ship to credit unions, it makes sense to consider the benefits of becoming a member to one of the more than 6,000 credit unions in the United States. 

Keep these five benefits and advantages of credit unions in mind when making your decision whether to switch or not.

Better Service

Since credit unions are owned by their members, they focus on giving their members the services that they need at an affordable rate. 

As a member you’ll also have a say in how things are run. Banks are profit centers that focus on the bottom line and try to get as much money as they can from each customer. 

Belonging to a credit union gives you a better chance of receiving excellent service and speaking to a human as opposed to an automated system.

Lower Interest Rates

Credit unions typically have lower interest rates than banks. Since they are not-for-profit organizations, they can pass these savings onto their members. 

A lower interest rate amounts to thousands of dollars for a large loan for an automobile or home. Most credit unions also offer low-interest credit cards too.

No strings attached accounts

Most banks have a minimum balance or activity requirement for the account to remain open and in good standing. More than 75 percent of credit unions have no minimum balance requirement for members to avoid fees.

Fees are lower

Fees for the same services that a bank offers are cheaper at credit unions because their ultimate goal is to serve their members. 

You can check out different fees at sites like https://www.dfcu.com/ for more information on fees and customer service. Credit Unions like this have a bit more flexibility in how and what they charge their members. 

It’s more common for a credit union to reduce services than raise fees for its members. They do have to maintain some fees in order to remain federally regulated, but they’re still significantly lower than a traditional bank.

Shared branches and ATMS

Banks used to be able to boast that they were the only ones with a large network of ATMs for their members to use without incurring fees. 

That has changed with the co-operative network of credit unions allowing customers to use shared resources to avoid fees. Individuals can also go into other branches and conduct transactions in person regardless of where they are. 

Before joining a credit union, make sure that you know where the other branches and ATMs are located so that you are able to make the most of your membership.

It used to be difficult to join a credit union because they required you to work at a certain company or belong to a specific organization, but membership opportunities have spread vastly in the last few years. 

Many credit unions only have a residency in a certain town or county to join. Credit union membership continues to grow while distrust in banks spreads. It’s clear that a credit union is worth looking into for savings and other perks.

Critical Differences Between a Bank and a Credit Union

Banks and credit unions both offer the same loan and financial products to borrowers and clients, but there are critical differences between each type of institution. If you are trying to decide where to open an account or where you should apply for a loan, understanding these critical differences is an absolute must. While some people will use terms like bank, savings institution and credit union interchangeably, here are the distinct differences all prospective clients should be aware of.

How Your Money is Used by a Bank

From the outside looking in, credit unions and banks are one and the same, but when you scratch the surface and learn about the operations, you will find that the two are extremely different. When you open an account with a bank, the money that is deposited will be used to invest and earn profits for that institution. This is why there are minimum balances for accounts or else you will be charged a fee. 

How Your Money is Used by a Credit Union

With a credit union, which is not a for-profit organization, you become a shareholder when you deposit money into your account. The dollars in the account are actually buying shares, and you are part owner of that company. Credit unions like PenFinancial Credit Union are not corporate entities and you, along with other members, have a say in how the company is run. Because members have an interest in how the company performs, they tend to take more pride in being a customer and a shareholder when doing business with a credit union rather than a bank.

The Presence of Banks vs. Credit Unions

Another thing that sets a credit union apart from a bank is its presence. Typically, banks have a nationwide presence, which creates the need for large advertising and marketing expenditures. Banks are also known to participate in lobbying efforts with the government to fight for new legislation that will help grow their profit margin. Their goal is to be on top, above competition in the industry.

The presence of a credit union is very different. Most of the time, only people with certain employers or in a specific community are able to become members. Because there is exclusivity, the credit union does not need to advertise. They partner with organizations and offer their products in a way that is spread through word of mouth. Being not-for-profit means that any profits are reinvested into the company to offer lower interest rates and better products. 

The Balance Between Customer Care and the Interest of the Institution

Credit unions want you to feel like part of the community. After all, you are part owner and deserve to receive the best customer care. While offering competitive products and services is important, these institutions have made a commitment to take build relationships and exceed their members' expectations.

Banks have to find a good balance between their motives to earn profits and the cost to provide customer care. All activities that the bank has should result in profits, and this can affect your bottom line. Banks are also allowed to use your deposit funds on a multitude of potentially risky investment options designed to increase the profits of their shareholders. These actions show where their loyalties truly lie.

As you can see, there are critical differences in the interests of a bank versus the interests of a credit union. Ultimately, you will need to decide if you want to be a depositor funding the profits of a bank or a shareholder of a credit union providing excellent rates and customer care.

5 Ways to Earn More Interest on Your Savings

Interest Rates (Photo credit: 401(K) 2013)

If you are someone who is committed to having a solid savings account, then there's a pretty good chance that you've taken the financial advice of top experts like Suze Orman, Dave Ramsey and Warren Buffett and put some money aside each month for your savings account. And if that's the case, we think that is simply awesome. But have you ever wondered what you can do in order to earn more interest on the hundreds (or thousands) of dollars that you have inside of it?

If you've been looking for ways to earn more interest on your savings, we have provided you with five of them below:

Look for the best interest rate. There are a lot of people who never consider changing banks simply because they have been with the same financial institution for many years. But if you really want to get more interest on your savings, we recommend you shopping around until you find one that has the highest rating. Although some of the larger banks do not have the best rates, many community banks and credit unions do. Just make sure that whatever institution you choose is insured by the Federal Deposit Insurance Corp. or the National Credit Union Administration.

See what incentives that you have to offer. Once you find a financial institution that you are interested in, the next thing that you should do is look for the kinds of incentives that they have to offer. For instance, there are banks that offer a modest monetary amount for opening up a new account and there are plenty of credit unions and internet banks that give bonuses for opening a new checking account with them as well.

Inquire about low-penalty certificates of deposit. Although low-penalty certificates of deposit are basically like "liquid money", one of the reasons why they appeal to many individuals is because they pay higher rates. With them, not only are you able to take money out at any time without a penalty, but you can earn a higher interest rate than a savings account. Plus, it comes with FDIC insurance.

Don't overlook your savings bonds. Something that you might want to speak with a company like DepositAccounts.com about is purchasing a few savings bonds. Although most of us can recall getting them from our grandparents while growing up as children, aside of it being a nostalgic gift, you might be surprise by the interest rating that comes along with them. In fact, a Series I savings bond can currently earn you as much as 1.76 percent. That's a pretty impressive amount.

Open up a money market account. If you're really serious about growing your savings account, something that you can do is open up a money market account. It's basically the same thing as having a savings account. The only difference is that in most cases, you have to have a minimum balance (sometimes as much as $2,500) and you're only allowed to make a withdrawal 3-6 times per month. But the benefit is that you are usually offered a much higher interest rate. For more information on money market accounts, visit your local bank institution.

3 Reasons a Credit Union May Be a Smart Financial Decision for Your Family

Credit Unions Vs Banks

Although they may seem similar in many respects, banks and credit unions are definitely different. Although credit unions have most or all of the convenience of banks, they also have advantages that banks to not have. For instance, credit unions are often more flexible about approving loans than banks are. Credit unions also frequently have a “down home” feel – tellers and bank officers may greet you by name whenever you visit.

While banks are commercial institutions, credit unions are nonprofit organizations. Most credit unions belong to the National Credit Union Association, or NCUA. While you must be a member of a credit union to open an account, credit union eligibility is often easier to achieve than you think. Churches, companies and even cities have organized credit unions for their members, employees or residents. As a result, the odds are good that you are eligible to join at least one credit union in your area. Depending on your circumstances, opening a credit union checking account may make sense. 

A Stakeholder, Not a Customer

As a member of a credit union, you are a stakeholder in the organization, and not just a customer. Your account represents an ownership interest in the organization. Because credit unions are nonprofit organizations, they often have programs in place to assist their members financially.

For example, many credit unions offer short-term loans to represent alternatives to costly payday loans. Payday loans are often due within one or two weeks and feature interest rates exceeding 300 percent. By contrast, short-term loans offered through credit unions have longer repayment periods, and carry much lower interest rates.

Credit Card and Other Banking Conveniences

Deposits made to a credit union are insured by the NCUA, just like deposits made to banks are insured by the Federal Deposit Insurance Corporation, or FDIC. This means that your money is safe. In addition, many credit unions offer Certificates of Deposit and other investment instruments that carry competitive earning rates.

As a member of a credit union, you can open checking and savings accounts, much as you can with regular banks. If you are a business owner, you can often open business checking and savings accounts through your credit union. You an also obtain personal and business credit cards from a credit union. Credit unions also often offer lower interest rates on credit cards and loans for individuals and businesses than banks

Extensive Free ATM Networks

If you hate ATM fees, joining a credit union is definitely a smart move. Many credit unions belong to nationwide networks that offer free access to ATMs for their members. You can deposit, withdraw and transfer money for no fee at any one of the ATMs that operate within the bank’s network. In addition, if you frequently travel abroad, you may be pleasantly surprised to learn that the debit or credit card issued by your credit union carries no foreign transaction fees. This feature alone can translate into significant savings if you use your card to pay for your hotel or for a car rental.

Charles Talley is a credit union branch manager. He loves to write about the benefits of this type of financial account on personal finance blogs.