July 26, 2017

There are three core deposit accounts that can help you manage and save money for your financial goals. Depending on what those goals are, one of these accounts may be exactly what you need so you can invest in the future. If you are not using the right kind of account, you can either be paying fees or missing out on the opportunity to invest and earn more money while your cash sits in an account. Here’s what you need to know about the three main deposit accounts so you can make an educated decision about which one is best for you.

Types of Core Deposit Accounts

Checking Account

Different banks may offer different types of checking accounts, but the main goal of each is to put your cash in a place that is safe and secure. This account is meant for you to use at will, but some banks charge a fee if you go over the maximum number of transactions allowed per month. It is always best to get a checking account with no fees so that you do not rack up charges if you need to do some extra shopping.

Money Market Account

A money market account will offer a higher rate of interest than a checking or savings account. However, the rate can change quickly in response to economic conditions, and there may be a minimum balance required to maintain the account. Although the funds in the account can be accessed anytime, the bank may set limits on how many withdrawals can be made each month.

Savings Account

Whether you’re a student or fully employed, everyone needs to have a savings account. With this account, you can make deposits and withdrawals, but the main goal of the account is to leave money in it so that it can add up over time. These accounts usually pay an interest rate that is higher than a checking account but lower than a money market account. Some savings accounts include an incentive for you to keep contributing money by charging a fee if your balance falls below a specific minimum. This is one of the simplest savings tools available.

Choose the Best Deposit Account for You at LUSO

Before choosing a deposit account, it is important to consider your banking habits and preferences. Once you have an idea of how you spend and want to save money, match your habits and preferences to account features that suit you. These three options are among the many that are available to you, so if you want to learn more or are seeking advice on how to gain control of your finances, you can speak with a professional at LUSO Federal Credit Union. Our professionals can help you set up accounts that suit your needs, and we provide a multitude of additional services as well. These include advising you on your mortgage, managing your finances, helping you get out of credit card debt, helping you save for future goals, and setting you up with the loans you need. Our services and rates are available in Wilbraham and Ludlow, Massachusetts, as well as throughout Hampden County. Please contact our Ludlow or Wilbraham branch at 1-(844) 587-6328 to learn more.

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