New research suggests checking account consumers are doing something that indicates they don’t feel as secure about the economy as they would like. One red flag is the amount of money people are storing in a checking account or even lower yielding savings.
Here’s why it matters and what it can mean for you:
A recent checking study shows credit union checking account balances reaching an all-time historic high. Across banks, thrifts and credit unions, the average consumer checking balance has increased in 24 of the past 30 quarters.
Credit Unions deliver more in dividend earnings than a typical institution and often have interest earning checking.
Consider your consumer choice and take stock of your money and maximize your credit union relationship for larger returns that match your goals:
- Your checking dollars can earn more than the average checking account when they are in a dividend checking account, but is limited if your trying to maximize earnings.
- Higher balances in checking accounts (over $3,500 average daily balance) earn a savings bump by moving excess (above $3,500) into a Money Market Account, still giving flexibility with the benefit of higher yielding dividends and tiered rates.
- Parking large sums of money in checking accounts unless you have a short term goal is the same as leaving money on the table. Consider the benefits of Certificates of Deposits (CD) and master laddering CD’s to benefit your short or long term plans.
Take advantage of a credit union relationship. If earning more with your money and creating a strong financial future is your goal, consider more of what your credit union can do for you. Learn more about the MTC Federal advantage and deposit services designed to save and earn more.