- January 27, 2023
- Posted by General Electric Credit Union
- 6 read
5 Ways to Shake Up Your Saving Strategy in 2023
Many New Year’s resolutions revolve around finances – and saving more money is a big one! If adding to your savings account is on your plan for 2023, now is a fantastic time to reevaluate any current strategies you have in place and determine if new ones are warranted. By taking an intentional approach, you can save smarter and faster in the new year and beyond.
New year, new ways to save!
1. Save with purpose
You know you need to save, but have you established why? Whether your goal is to purchase something significant, like a new home or car, or to reach financial security today or tomorrow, solidifying your why will keep you motivated and help you properly strategize. Take a moment at the beginning of the New Year to brainstorm what you want to accomplish in the short- and long-term. You may find there are some goals that require you to up your saving game.
- Tip: Track all your saving goals with Money Management. This free, intuitive tool is available to General Electric Credit Union (GECU) members enrolled in Online Banking or who use our mobile app.1 With its help, you can measure your progress, find room in the budget for more savings, and so much more!
2. Save smarter
The best savings accounts allow you to earn off your balance. These may include:
- High-yield savings accounts. Unlike your checking account balance, your savings may not fluctuate as much because they’re not being used for everyday spending – and that makes those savings a fantastic opportunity to take advantage of compounding interest with a high-yield account. Some options even have multiple rate tiers that reward you as your balance grows. Take advantage of a great rate while keeping your money accessible with a high-yield savings account. Did you know GECU’s Thrive Money Market Account has no minimum balance requirement?2 Start earning off as little as a dollar when you open an account online in minutes.1
- Certificates. Often, financial institutions offer even higher rates on certificates because they require you to keep your funds in the account for a set period. You can avoid early withdrawal fees by waiting until the maturation date to access funds.
- Select retirement accounts. An Individual Retirement Account (IRA) Money Market account combines the tax advantages of an IRA with the stability and guaranteed earnings of a money market account.
3. Save securely
When’s the last time you checked whether your funds were insured? If you can’t remember, it’s time to get keyed into the security of your finances – especially as you work to grow your savings balance. The National Credit Union Administration (NCUA) protects your funds up to $250,000 per credit union, per accountholder, and per ownership category – such as single ownership, joint, and retirement accounts. Use an online NCUA calculator to verify if you’re covered.
If you’re not, there are several strategies you can enlist to address the issue. One is adding a joint owner to qualifying accounts. Schedule an appointment with your financial institution to see what strategies are available to you based on your situation.
- NCUA coverage can get complicated. Watch GECU’s A Quick Guide to NCUA Insurance to learn the basics of sole-owned, joint-owned, and revocable trust accounts.
4. Save effortlessly
Financial institutions may have tools you can use to put saving on autopilot. For example, automatic transfers will help you establish a rhythm of consistent saving. Or you could also lean on round-up programs, which round your debit card purchases up to the nearest dollar and deposit the difference in a linked savings account.
5. Save on taxes
Both traditional and interest-earning savings accounts are fantastic ways to set yourself up for a successful future. But there are some specialized, tax-advantaged accounts to consider that may help you achieve specific goals, such as retiring comfortably or covering the cost of medical expenses.
- Individual Retirement Accounts (IRA) and 401(k)s allow you to stow away money for your golden years. You won’t have to pay taxes on traditional IRA funds until they’re withdrawn. For both Roth IRAs and 401(k)s, you pay taxes upfront and won’t have to pay more when you access the funds later in life.
- Health savings accounts (HSAs) have even greater tax advantages because the funds are tax free going in and out! But these funds must be used for qualifying medical expenses, such as doctors appointments, prescriptions, or medical equipment. Because HSAs come with so many tax advantages, there’s a trend among millennials in 2022 to devote their HSA balance to medical expenses later in life – essentially using this account as part of their retirement strategy.3
GECU is here to help you jumpstart your saving strategy for 2023. Whether you use one of the above tips or schedule an in-branch appointment to learn more about our savings account options, you’ll have the tools and resources needed to succeed as a member of Cincinnati’s Best Credit Union.