Savings Accounts

Your ability to make withdrawals may depend on which savings account you choose. Some accounts have restrictions on withdrawals, while others do not. Here’s a quick guide:

• Personal savings and youth savings accounts offer unlimited withdrawals in person or online.
• Holiday Club funds are automatically transferred to your savings or checking account once per year on a date of your choosing, but you may make additional withdrawals without penalty.
• Traditional IRAs and Roth IRAs have different withdrawal rules. A Traditional IRA lets you withdraw funds after age 59½ while a Roth IRA allows withdrawal of your contributions anytime and withdrawal of your earnings after five years.

All Fibre Federal Credit Union and TLC savings accounts offer the ability to make ongoing deposits anytime that suits you. Here are a handful of popular options:

• In-person deposits at your preferred location or Fibre/TLC ITM
• One-time transfers from your other accounts using Online and Mobile Banking
• Scheduled or recurring deposits using Automatic Transfers
• Direct Deposit from another person or organization
• Payroll Deduction from your paycheck
• Deposit checks with Mobile Deposit

In contrast to savings accounts, most certificate accounts do not let you make ongoing deposits after you start your certificate term. However, a Money Builder Certificate is a good choice if you wish to make ongoing deposits.

Our savings options each offer distinct advantages and benefits to suit different needs and goals. Here are a few considerations to help you decide which account can work for you:

• A personal savings account lets you establish credit union membership and create great savings habits with a low minimum balance requirement of $5 and a minimum of just $50 to start earning dividends.
• A youth savings account like Cash Club or Student Savings is the best choice for members under 18. Parents and caregivers serve as joint account holders, and your child can get practice making deposits and withdrawals.
• A Money Market account has a minimum initial deposit of $1,500, so it’s ideal if you’re at the next level of your saving ability and are saving for a large purchase or building a financial safety net. Higher balances can earn higher dividend rates.
• A Holiday Club account can be opened in addition to any other account to help you save specifically throughout the year for Thanksgiving, Christmas, Hanukkah, and other holidays or vacations.
• IRAs can usually be opened even if you have an employer-sponsored retirement plan like a 401(k). If you don’t have a workplace plan, then an IRA is an essential tool to help you save for the future.

When you open a savings account with a credit union, you become a part-owner or shareholder. Credit unions are not-for-profit and can pass revenue back to members in the form of a higher annual percentage yield (APY) on deposits, lower interest rates on loans, and no monthly maintenance fees on savings or checking accounts.

By contrast, brick-and-mortar banks and online banks are usually accountable to outside stockholders and may offer less favorable rates and terms. Also, note that credit union funds are insured by NCUA up to $250,000 whereas banks have FDIC insurance.