Financial terms can sometimes be confusing. And if you are opening a savings account for the first time, you will likely have several questions. We are here to help guide you through the process and make it as easy as possible.
The best feature of a savings account is that your money is working for you by earning interest. Interest is the amount of money you earn on your account balance.
Compounding: The initial deposit earns interest and that amount is added to your account balance. Interest is then earned on that new, higher balance. Interest may be compounded monthly, quarterly, semiannually, or annually.
Annual Percentage Yield: APY represents the total amount of interest you receive if you leave a certain amount of money in an account for a full year, or for the term of the account for a share certificate. The APY factors in the effects of compounding-the more often the account pays interest, the more money you make.
We will give you all the details about minimum balance requirements, fees, and penalties for early withdrawals of certificates when you come in to the credit union to open an account.