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The Most Common Types of Savings Accounts

Nov 13, 2019

Most Common Types of Savings AccountsSaving money can be hard, we get it. But it’s important to set money aside for a rainy day, because you never know when you’ll need it. To help you manage your money, most banks or credit unions offer four types of savings accounts: regular/basic savings accounts, money market savings accounts, certificate of deposit accounts, and online savings accounts. Since your specific saving needs may not fall within these four categories, PFCU offers more types of accounts so that you can manage your money however you see fit – after all, it is your money.

Regular Savings Accounts

Regular savings accounts allow you to earn interest and access your funds quickly, which is why every PFCU member starts their financial journey here. When you become a PFCU member and make your initial $5 deposit, you automatically establish a regular savings account and can begin saving up for whatever it is you have your eye on. With this account, you can make deposits and withdrawals easily by using ATMs or visiting any PFCU branch; you can also make deposits via Direct Deposit or eDeposit.

Money Market Savings Accounts

This type of account is a high-rate alternative to regular savings accounts. The balance requirement may be higher, but with a money market savings account, you’ll typically earn more interest, making this the perfect type of savings account for anyone with long-term savings goals. With this account, you can put your money aside, watch it grow with the higher interest rate, and withdraw it whenever you need it – without penalty. You’ll only be able to make six withdrawals per month, but this is true amongst most banks and credit unions.

At PFCU, we offer a low minimum balance of $2,500, a tiered interest rate, and we’ll even throw in a complimentary first box of checks to get you started. If your minimum daily balance is $2,500 or greater for each day of the month, we’ll waive the $5 monthly fee. Even better, the dividend rate will increase once the minimum daily balance reaches $2,500, $10,000, and again at $25,000. You’ll be able to access your funds at any PFCU branch, but they won’t be accessible through ATMs.

Certificate of Deposit Accounts

Certificate of Deposit Accounts – referred to as Savings Certificates at PFCU – are also good for anyone with long-term savings goals since it usually has the highest interest rate, but the most limited access to funds. If you’re looking to stash your cash with us, we’ll be sure to thank you with higher rates, and the longer you park your money with us, the more dividends you’ll earn.

For low-minimum deposits, we’ll let you pick the term. Minimum opening deposits can be as low as $250 for PFCU’s three- and six-month Savings Certificates; the minimum opening deposit is $500 for all other terms. If you withdraw your funds before the Certificate matures, you'll be assessed a penalty of earned dividends.

At PFCU, you can stash your cash with confidence, because with this type of account—as well as all of our other accounts—your money is insured by National Credit Union Administration (NCUA), an agency of the federal government, for up to $250,000 per depositor. All PFCU accounts also have additional coverage up to $250,000 from Excess Share Insurance Corporation, a licensed insurance company.

Online Savings Accounts

This type of account has high interest rates and makes deposits and withdrawals convenient, which is why many people choose it. While we don’t offer online savings accounts at PFCU, we still want our members to know about all of the options that exist. Online savings accounts are best for people who are more focused on maximizing their interest rates rather than features like physically going into an institution. Some people have an online savings account in addition to a traditional savings account, but if you only have an online account, one drawback to consider is that you wouldn’t be able to walk into your local branch and talk to a representative for any reason, or if you encounter any issues.

At PFCU, we’re here to help make saving money easy because we know that each individual member has unique savings needs. That’s why PFCU’s offerings are a bit different than the four types of accounts we just listed. In addition to regular savings accounts, money market savings accounts, and certificate of deposit accounts, we offer higher yield savings accounts that allow you to earn the highest possible return on your investment and withdraw funds at any time. We also offer holiday and vacation club savings accounts that are designed to help you save up for something special over time so that you can treat yourself – because we know you deserve it.

For more in-depth information on key account features, rates and fees, or how to open one of these accounts, visit one of our branches or https://www.joinuspfcu.com/.

Erin Ellis

Erin Ellis
Accredited Financial Counselor ®
Philadelphia Federal Credit Union
National Association of Federal Credit Unions 
PFCU is a proud member of the National Association of Federal Credit Unions
National Credit Union Administration 
Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency.
Excess Share Insurance Corporation 
Additional insurance of up to $250,000 on your savings accounts is provided by Excess Share Insurance Corporation, a licensed insurance company.
Equal Housing Lender 
We do Business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

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Please note that the amount of money contained in your investment accounts are considered non-deposit products and therefore, are not NCUA insured, not credit union guaranteed, may lose value, are not guaranteed by any government agency. Since they are not a deposit of the Philadelphia Federal Credit Union, investment accounts do not qualify for Excess Share Insurance (ESI). Securities, Financial Planning and Insurance products are offered through LPL Financial, and its affiliates, Member FINRA, SIPC. LPL Financial and Philadelphia Federal Credit Union are independent entities.