February 2, 2021Which Savings Options Are Right for YOU? 

When it comes to saving money, most people begin with a basic savings account. Then, they move directly into market-based investments, like stocks and bonds. However, before you jump into higher-risk market-based investments, know that PEFCU offers many investment options that have great returns with little to no risk. Let’s review these options in more detail so you can choose some that will help you live your best financial life. 

PEFCU Prime Share Savings Account 

Savings accounts are your first step to saving money. This option is good to use as an emergency fund account; if an unforeseen event occurs, you have the money available to pay for any costs. Another use of a savings account is to save for the holidays or vacations, as with the Holiday Club account.  

Keep in mind that PEFCU has other savings clubs designed for children and teens, too. These clubs help them learn financial responsibility and independenceAs you can see, it’s very easy for your whole family to start good savings habits with our savings options 

Money Market Account 

money market account is a type of savings account that offers a higher interest rate than a regular savings accountIt’s a great way to learn to save your money and build stable savings. It’s also another great way to save up emergency funds 

Keep in mind that you will have to have a higher minimum balance with money market accounts than with regular savings accountsAlso, you can’t make unlimited withdrawals. Instead, you are only allowed up to six transfers or withdrawals each month. And if your balance falls below the required minimum balance, you will not earn interest until the minimum balance is met again.  

PEFCU Share Certificate Account 

share certificate account is a timed deposit option that is also different from regular savings accounts. Instead of having access to your money at any time, a share certificate requires the money to be kept in the account for the required term length you choose, which can range from six months to five years. The benefit in a share certificate is that the longer the term goes, the higher interest rates on your money.  

But the money must remain untouched. You can get a penalty for early withdrawals if you don’t let the account mature. Otherwise, a share certificate is ideal when you just want to sock your money away and let it build interest with low risk. 


Individual retirement accounts (IRAs) are savings accounts that allow you to invest your money while getting tax benefits. There are many IRAs available at PEFCU, including Roth and Traditional IRAs. 

The biggest advantage of an IRA is that you can get tax breaks on the money you investThdividends can increase annually without taxation. You can put a set amount in the account monthly until you reach the maximum annual contribution limit. 

Unfortunately, there are also drawbacks to an IRA. These accounts are retirement accounts and designed for you to save for the long-term. You may get hit with a strict penalty of 10% if you withdraw the money before reaching the required retirement age. 

Get Started Today! 

Every person’s savings situation is different. We’re here to help you make the best financial decisions for your specific goals. Stop by any branch location or give us a call at 1-800-226-6673, and we’ll work with you one-on-one to find the right savings options for you. 


Each individual’s financial situation is unique, and readers are encouraged to contact PEFCU when seeking financial advice on the products and services discussed. This article is for educational purposes only; It does not constitute legal advice. If such advice or a legal opinion is required, please consult with competent local counsel. 

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