Over the past decade, there has been a large migration of people away from traditional commercial banks (Wells Fargo, Chase, Bank of America, etc.) and towards the use of credit unions to build personal savings accounts. This sort of move is typically beneficial since credit unions on average have lower fees and interest rates but also offer better savings rates. When deciding whether to use a credit union for building your personal savings, consider the following benefits.
Personal Saving Options Available at LUSO Federal Credit Union
LUSO offers a wide range of savings accounts that are aimed at providing all Hampden County residents with ideal options. A number of different savings account options are available, each tailored to a different need. Whether you are a college student looking to start building wealth, a long-time worker who wants to get some extra perks with their savings, or interested in building secured funds for building credit, you can find the savings account that works best.
Free Checking Accounts
Free checking means you won’t need to worry about monthly service fees or transaction fees that occur at point-of-sale. No matter how much money you keep in your balance, LUSO recognizes the importance of keeping things as hassle-free as possible. Checking accounts can have interest rates ranging from 0.05% to 1.49% depending on preferences, savings, and perks.
Club Account Products
A club account is an interest-focused savings account meant to help people save up for the holidays. These accounts have one-year terms and are designed to yield interest before the peak holiday season so you don’t need to worry about timing your R&R. These accounts are also called the “Christmas Club” since they can be used to mitigate credit card interest or other fees that holiday shopping can incur.
Certificates of Deposit
Although not a true savings account in the conventional sense, certificates of deposit are a flexible and low-risk investment that can be used to build up savings over the long term. This makes them perfect for building up Individual Retirement Accounts over time, so you can keep your tax obligation low while still accumulating funds.
Individual Retirement Accounts
IRAs are a form of tax-deferred (or sometimes tax-free) savings account that offers stronger growth than conventional savings accounts. Although not an investment in and of itself, an IRA is an excellent basket in which you can store financial products and savings to let them build freely.
Money Market Accounts
Money market accounts are a type of savings account that has identical protections to conventional savings accounts and higher interest rates in exchange for larger minimum balance requirements. Money market accounts are good for building wealth in a secure, steady manner while still providing the option of tapping those funds in a crisis—something other higher-interest accounts do not always allow without penalty. LUSO’s money market accounts offer interest rates ranging from 0.15% to 0.25% and up to six fee-free transactions per month.
LUSO Federal Credit Union is a member-owned, not-for-profit financial cooperative that is dedicated to providing members with quality financial services and products. We have a deep understanding of the variety of needs Hampden County residents have for their financial products and customize our savings account options accordingly.
Feel free to contact our Ludlow branch toll free at 1-844-LUSO-FCU or our Wilbraham branch at 1-800-808-5876 for more information on how to stay safe and secure.