Understanding Your Savings Options with Rave Financial
🕒 2-minute read
At Rave Financial, we’re all about helping our Southeast Texas neighbors make smart money moves. Whether you’re just starting your savings journey or looking for new ways to grow your hard-earned money, it’s important to understand the different types of accounts available to you. Here’s a simple breakdown of your options—no jargon, just straight talk.
What’s a Basic Savings Account?
A savings account is a great first step toward building financial security. At Rave Financial, you can open a basic savings account—also called a share account—with a small deposit. Many of our members use it alongside their checking account to easily move money between the two.
Savings accounts offer easy access to your funds, no high minimum balance requirements, and no maximum on how much you can save. While interest rates on basic savings accounts are typically modest, the flexibility makes them a solid foundation for your financial goals.
What’s a Money Market Account?
Looking to earn a little more on your savings without losing access to your cash? A Money Market Account might be the right fit. These accounts typically require a higher opening balance—often $1,000 or more—but in return, they offer better interest rates than a regular savings account.
You’ll still have the flexibility to transfer money as needed, but be mindful of minimum balance rules and withdrawal limits, which can vary. Money Market Accounts are great for members who want to grow their savings a little faster while keeping funds close at hand.
What’s a Certificate of Deposit (CD)?
If you have a specific savings goal and don’t need immediate access to your money, a Certificate of Deposit—or CD—can be a smart choice. With a CD, you choose a term (anywhere from a few months to five years), lock in your funds, and earn a fixed interest rate.
The longer your term, the better your rate. Just keep in mind: if you withdraw early, you might face a penalty. CDs are ideal for planned savings like a vacation, a future down payment, or building up an emergency fund.
Other Ways to Save
We’ve covered the basics, but there are other savings options out there—like NOW accounts or investment-based accounts with money market features. These are typically used in more specific financial situations.
Let’s Find What Works for You
Every member’s journey is different—and that’s what makes our community strong. Whether you’re saving up for something big or just want to build a rainy-day fund, we’re here to help you choose the account that fits your life. We’ve covered the basics, but there are other savings options out there such as investment or retirement accounts. Our dedicated financial advisor, Marioreen “Mario” Gibson would be happy to discuss these other account options with you. Schedule an appointment with her here.