Many people wish they were saving more. Nearly two-thirds of Americans say they don’t save enough according to Pew Research Center.

Having the right savings account in place can help you reach your savings goals, but not all accounts are created equal. Knowing your options — and how they work — is key.

Primary savings account

A primary savings account offers a safe and secure place to store your funds while earning interest (referred to in credit unions as dividends). While the rates might be lower compared to other savings options, these accounts usually come with minimal fees and requirements. For example, your Primary Share Savings Account only requires a $25 minimum deposit to open and a minimum $25 balance to be eligible for dividends.

Primary savings accounts also often allow you to easily access your funds whenever needed, making them an ideal choice for an emergency fund or general savings.

Youth savings accounts

Youth savings accounts are tailored to help children and teenagers learn about saving money and managing finances from an early age.

These accounts typically offer lower minimum balance requirements and no monthly fees, making them accessible for younger savers. Your MySavings Youth account has no minimum balance requirements or monthly fees. 

Youth savings accounts serve as an excellent tool for parents to instill good financial habits in their children and can be a stepping stone to more complex financial products.

Sub-savings accounts

Sub-savings accounts, sometimes referred to as goal-oriented savings accounts, allow you to divide your savings into separate categories without opening multiple accounts. For example, you can have one sub-savings account for a vacation fund and another for holiday shopping.

This type of account can be a great way to keep your savings organized and focused on specific goals. Sub-savings accounts typically offer the same rates as your primary savings account, but they provide added flexibility by helping you track and manage your financial goals separately.

Money market savings accounts

A money market savings account offers higher rates compared to a standard savings account, making it an attractive option for those with larger balances.

While money market savings accounts offer higher returns, they also come with certain restrictions. For instance, there may be a minimum balance requirement, and the number of withdrawals or transfers you can make each month may be limited. These accounts are ideal for those looking to earn more on their savings while still having relatively easy access to their funds.

Share certificates

Share certificates are the credit union equivalent of certificates of deposit (CDs) offered by banks. They can be a low-risk investment option that typically offers higher rates than regular savings accounts in exchange for keeping your money locked in for a specified period.

Share certificates come with various term lengths, ranging from a few months to several years. For example, your share certificates offer guaranteed rates from three months to five years.

In a normal market, the longer you commit to leaving your money in the certificate, the higher the rate you'll likely earn. However, if you withdraw funds before the term ends, you may incur a penalty. Share certificates are ideal for savers who have a lump sum they won’t need to access immediately and are looking to maximize their returns.

Individual retirement accounts

Credit unions also offer IRAs to save for retirement with tax advantages. There are different types of IRAs, including traditional IRAs, Roth IRAs and SEP IRAs, each with its own set of rules regarding contributions, taxes and withdrawals.

IRAs typically offer a variety of investment options, including share certificates, money market accounts, and mutual funds. The main advantage of an IRA is the potential for tax-deferred or tax-free growth, depending on the type of IRA you choose. These accounts are designed for long-term savings, and withdrawing funds before retirement age may result in taxes and penalties.

Health savings accounts

A health savings account is a tax-advantaged savings account designed specifically for individuals with high-deductible health plans (HDHPs). HSAs allow you to save money for medical expenses while enjoying tax benefits on contributions, earnings, and withdrawals used for qualified medical expenses.

HSAs can be used to pay for a wide range of healthcare costs, including doctor visits, prescription medications, and even some over-the-counter items. The funds in an HSA roll over year after year, and you retain control of the account even if you change jobs or retire. This makes HSAs a versatile tool for managing healthcare costs and saving for future medical needs.

Whether you’re saving for a short-term goal, planning for retirement, or managing healthcare expenses, there’s likely a credit union savings account that’s right for you. Visit the Savings Hub to explore your options and start planning for a brighter financial future.