OnPath Credit Union

You don’t need to have a large amount of cash to implement smart savings strategies to grow your money. While it is true that some of the highest interest savings options have high minimum deposit or balance requirements and limited accessibility, there are some high-yield accounts that require no minimum balance.

Banking customers who want high yields in an account with anytime access and no limitations on withdrawal frequency may find value in our OnPath Rewards High-Yield Checking.

Finding a high-yield account is only half the battle. Account holders should also adopt growth-oriented deposit and savings practices to maximize the yield they earn on the money they keep in the bank or credit union.

Maximize Your Deposits in High-Yield Accounts

Maximizing deposits is one of the easiest ways to ensure optimal growth of your savings. If you have several accounts, each earning a different yield, you may get the best results by transferring your savings to the highest-yield account.

This isn’t always feasible if your highest yield account isn’t your checking account because you’ll likely need sufficient cash in that account to cover everyday expenses, rent and utility payments, etc. However, keeping as much of your funds as possible in the highest-yield account can be a good way to maximize the growth of your cash.

Know the Account Details and Requirements

It’s important to do your research before opening an account and transferring your money. Some checking or savings accounts might advertise a particularly high yield that’s only available if you meet minimum balance requirements.

Many accounts have a high rate for funds in an account up to a specific limit. Funds beyond that limit may earn a significantly lower rate. Savers may want to adjust balances in different accounts based on those limits.

For instance, if your high-yield checking account earns seven percent on balances up to $10,000 and 0.5 percent on amounts above that, while your savings account earns three percent, consider keeping $10,000 in the checking account and the rest in the savings account.

The goal should be to maximize the yield earned based on the limitations or restrictions of different accounts.

Organize Your Funds as Needed Without Sacrificing Yield

While it does help some people reach various savings goals by depositing funds in separate accounts, you may want to prioritize earnings over organization. It might not be in your best long-term interest for the money in your emergency fund, vacation fund, roof replacement fund and new car fund to earn less than the funds in your high-yield checking account.

However, some people may be more motivated to make regular deposits toward specific goals by keeping money in separate accounts. If that’s the case for you, try to find savings options that allow you to earn a competitive yield.

Minimize Withdrawals in Your High-Yield Accounts

The ultimate goal of high-yield savings is to maximize the positive impact of compound interest. In other words, the money you earn from interest then earns its own interest and so on. The longer money is left in high-yield accounts, the more compound interest growth you’ll enjoy. Withdrawing funds reduces the amount of interest earned and diminishes the benefits of compound interest.

Consider Account Features, Benefits and Fees

Yield isn’t everything. High fees on some accounts may eat into overall returns. When you’re shopping around for different accounts, be sure to review each option’s features and fees. You ideally want to find accounts that don’t charge a lot of extra fees or impose strict limitations.

Also consider some of the rewards or features of the account. For example, does the account offer cash back rewards on debit card purchases up to a specific limit? How much could you potentially earn through that cash back program, and how does that amount compare to the annual yield?

You may find that the limitations on cash back rewards make a higher-yield account with no cash back the better long-term savings option.

Do Your Homework and Save Wisely With Our New Orleans Credit Union

Make your money work for you with the help of OnPath Federal Credit Union. Our OnPath Rewards High-Yield Checking offers a convenient way to maintain easy access to your money while still earning a great yield. Plus, you can enjoy a host of other great features on this free account, like free online bill pay and an exceptional ATM network.

Call 800.749.6193 to learn more about becoming a member and maximizing your savings with OnPath Rewards High-Yield Checking.