Automate Your Savings & It’ll Go Further Than You Think
Automation is everywhere these days. Did you know you can also automate your savings throughout the year, resulting in a pleasant surprise when it’s time to tap into your funds?
About 44% of the respondents to a recent Forbes survey who saved money this past year did so by setting up recurring transfers into savings from other accounts. Another 38% saved by having a percentage of every paycheck deposited directly into savings. You can save in these ways and more as a CPS IBEW FCU member.
And the benefit? Believe it or not, saving during rising interest rate periods can really pay off. When you hold money in an interest-bearing account like savings, CDs, and bonds, you’re “loaning” your money to the financial institution holding those accounts. In those cases, you’re the lender, not the borrower. Consequently, the interest rates for those accounts may also rise with inflation and earn you more money. According to Forbes, Nearly half of Americans are maximizing their savings through a high-yield savings account, and 41% opened the account to take advantage of interest rate hikes.
By automatically earmarking even a small portion of your paycheck for a savings (or similar) account, you’re “saving” yourself from having to make the decision to contribute each and every pay period. Little by little, that money will grow.
As a CPS IBEW FCU member, you can automatically save—and grow that savings— in the following ways:
Direct Deposit and Payroll Deductions: Your paycheck can be directly deposited into your CPS IBEW FCU checking account. Automatic payroll deductions from a CPS Energy paycheck for loan payments and other debts can also save you money because paying on time can help you avoid fees and incurring interest.
Interest-Bearing Jumbo CDs: Earning money automatically can be done with many different accounts, but one of our favorites at the moment is our Jumbo CDs, which are currently earning 4.07% to 5.12% APY. These CD accounts have 6-, 12- and 24-month terms available, with dividends calculated using the daily balance method.
Easy Saver Program: When you make a debit card purchase, the total cost can be automatically rounded up to the nearest dollar. That difference can be automatically deposited in your savings account (with dividends paid monthly) or Christmas Club Account (which earns an even higher interest rate than a traditional savings account). On the first business day in November, Christmas Club funds are transferred into your primary share account, ready to be used to help you spread holiday cheer.
You likely have several expenses on “autopilot” including streaming services and other subscriptions. It’s time to better automate your savings, too. Most Americans don’t have enough cash saved to cover a $1,000 emergency expense. You can save at least that much by automatically setting aside a few dollars here and there. Give it a try, and let us know how much save!
