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When you were a kid, your
parents probably said to you, "Money doesn't grow on trees." What
they meant is there’s no real process where you can plant money and watch
it grow into more and more money. Or is there? There may not
be real trees with leaves of money waiting to fall or be plucked from
golden branches, but growing money is a very real and very rewarding
process. It’s simple to find a real-life money tree:
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Your seed: Money
(Minimum of only $500)
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Your soil: A
Share Certificate Account (at Credit Union of Ohio)
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The result: Your
money grows (and no watering necessary)
Nothing is required of
you after opening your account, making these accounts an easy way to
increase the return on your money. Share Certificates are also protected
by the federal government, so they are safe, secure investments, unlike
the stock market or mutual funds.
Planting the Seed
When you open
an account, you have to make some serious decisions. How much money will
you deposit? What term (or how long your money is planted) is the best
option? Most financial institutions offer terms from three months to 60
months. To get the most out of your investment, it is important to
pick the right combination of rate and term.
Adding Branches to Your Tree
Now that you understand your basic choices, you can look into a process
called “laddering.” Why should you have to choose just one account, one
term and one amount? When you ladder certificates, you give yourself more
options because your money isn't locked up into one flower pot. Even
though the healthiest growth may be found in long-term certificates, you
may want more flexibility. What if you want to save for short-term goals
too? Invest part of your money in a shorter-term certificates. It will be
more liquid and it will have still earned interest. If, by maturity, you
don’t need the money (or rates have risen), reinvest your money with the
higher rate instead of cashing it in. You can play on all the rungs and
often, or you can use only two rungs of the ladder if it suits you better.
You have more freedom, more choices and more money.
Planting BIG Trees
Bump-Up Accounts are very special accounts, which allow you to “bump” your
certificate rate to the current rate, up to 100 basis points (or 1.00%).
Bump-Up Certificates are offered in either 20 or 30-month certificates. It
only takes $5,000 to open a 20-month account and only $10,000 to open a 30
month account. This is one way to take advantage of growing rates or to
battle falling rates. You can only bump-up once, but once is all most
people need.
How to Get Bigger
Blooms
One of the benefits to being a member at Credit Union of Ohio is the extra
benefits. By now you should have heard of PridePoints. Get
bigger blooms on your money tree by cashing in your points to get a 0.25%
or 0.50% increase on any regular certificate. Plus, we give you one
point for every dollar in dividends you earn. So you earn points
even faster when you use points. Think of it like "Super Duper
Miracle-Gro" for your certificates. |
