Saving For the Life You Want
March 29, 2023
Every milestone, dream or ambition comes with a cost you can prepare for. You might consider buying a house, saving for a baby, or going back to school—or maybe a combination of these. With attention, consistency, and some simple guidelines, you can build a solid savings plan with Redwood Credit Union’s help.
Before deciding how much to save and what accounts to use, here are saving tips to consider.
Your savings account
This is the account you first opened when you joined RCU and may be the perfect place for your emergency fund. A good rule of thumb is to keep a cushion of six months’ worth of expenses, whether the funds are kept in a savings or money market account.
Boost your earnings
Money market accounts and certificates offer unique features to meet different needs. If you’re above the fee thresholds and meet account minimums, one of these may be the best option for you.
RCU money market accounts let you access your funds whenever you need them. Interest rates are higher than those in a savings account, with higher balances earning even higher rates.
Savings certificates are less flexible since you’re committing to a particular term. But the trade-off is you earn some of our highest deposit rates. Recent rate hikes have made certificates a popular choice. Also, these generally earn more if there’s an associated checking account.
Branch out
Once the basics are in place, what’s next? There are plenty of options. For example, an individual retirement account (IRA) helps you prepare for the future, with possible tax advantages. (Consult your tax advisor.) RCU offers IRAs with deposit insurance and no fees.
There are also great investment options for your IRA including mutual funds, annuities, stocks, bonds, and more. There’s a team of CFS* Advisors at RCU to help you manage your wealth and hit your goals.
Track your money
All RCU deposit accounts are easily accessible through online and mobile banking. You can watch your balances grow, track your deposits, and transfer money between accounts. It’s also easy to set up automatic transfers for reliable, hassle-free growth.
Let us help you achieve your savings goals. Schedule a complimentary appointment with a CFS* financial advisor today.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Redwood Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union Members.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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