With the start of a new year, you may have begun reviewing last year’s financials as you set a new budget or begin preparing for tax season. But what if you look at your account statement, only to find out that you made almost no interest on your money in the past year? Or, what if you realize your checking account is giving you the bare minimum?
There’s a chance that you’re leaving too much money in the wrong accounts.
Keep reading to learn more about which accounts might be “wrong,” alternatives, and how to find the right account for you and your goals.
What Type of Account Is the “Wrong” Account?
There are so many types of accounts out there – savings accounts, checking accounts, certificates of deposit, exchange-traded funds, mutual funds, and more. And each type of account has its own pros and cons.
But you might have your money in the “wrong” types of accounts if the accounts you’re using aren’t helping you meet your financial goals. But depending on your goals, some accounts may help you meet those goals better than others.
Let’s look at two common types of goals: getting the most from your checking account, and maximizing your income.
First, if your goal is getting the most from your checking account, and earning rewards on your everyday purchases, a checking account that doesn’t offer any rewards wouldn’t be the right type of account for you.
And if your goal is growing your current funds, some types of deposit accounts may not help you do anything more than keep your current nest egg safe. In other words, you likely won’t be earning any interest on the money in that account.
That’s because the typical interest rates on these types of accounts are currently low, according to data from the FDIC. Which means your money isn’t able to earn much interest.
What Accounts Might Be “Better” for These Goals?
No matter your goals, the best types of accounts for you are the ones that will help you reach those goals.
If you’re looking for a checking account that does more than the bare minimum, the Academy Bank Select Rewards Checking Account offers up a big serving of rewards when you bank, shop, and play.
And if you’re looking for better interest rates, money market accounts and certificates of deposit (CDs) typically offer higher interest rates than traditional savings accounts.
Rewards Checking Accounts
A checking account is a type of account that many of us use almost every day. But a checking account that gives you the bare minimum is a “bad” account when there are alternatives that give you a whole lot more.
The Academy Bank Select Rewards Checking Account** helps you protect your identity, your purchases, and your phone. Plus, it offers you the ability to enjoy big savings when you bank, shop and play.
Here’s just a sampling of what you can get with Academy Bank Select Rewards Checking:
- Get paid one day early with Early Pay
- Unlimited, free access to 30,000+ ATMs nationwide with MoneyPass Network - easily find an ATM near on the MoneyPass site
- Online Banking with Bill Pay
- Mobile Banking with Check Deposit
- Visa Debit Card & Controls
- Free e.Statements
- Saving Cents Eligibility - round up your debit card purchases automatically and put the change in your savings
- Over 70 locations, including branches inside Walmart with weekend and evening hours
Now, why would you want to settle for a checking account that offers you anything less?
Money Market Accounts
A money market account is a type of savings account that can help you grow your investments, more than a traditional savings account can. It can help to think of money market accounts as a combination between traditional savings accounts and checking accounts. For some people, money market accounts are the best option because they provide the best of both worlds.
Like savings accounts, money market accounts can earn interest. But one of the main benefits of a money market account is the fact that they often earn higher interest than traditional savings accounts. Just keep in mind that money market accounts typically have higher balance requirements in order to earn that higher rate. Minimum balances are usually $1,000 or more.
As of February 2023, Academy Bank currently offers a money market account with a 2.53% Annual Percentage Yield for 6 months with a minimum deposit of $10,000, which can help up power up your savings to start the year.
Certificates of Deposit (CDs)
A certificate of deposit, or CD, is another type of account that can help you earn more interest than a traditional savings can. CDs basically hold a fixed amount of money for a fixed length of time -- you’re setting that money aside until a later date. But the upside is that you’re doing so with the promise of receiving a certain interest rate in return.
While the length of time you leave your money in a CD varies, the longer you leave your money in the account, the more interest you’ll be able to earn. When you commit to leave your money in the CD for a specific period of time, you’re essentially allowing the bank the option to borrow your money during that time. So, you get higher interest rates, but you also have restricted access to your money.
A CD could be a “good” account for you if you want to earn some interest on your savings in a low-risk way. But they’re best when you don’t need immediate access to those funds. Also, keep in mind that CDs generally have a minimum deposit or balance requirement, such as $500, so they’re not great if you’re looking to set aside an amount lower than that.
Right now, Academy Bank offers high-yielding CDs that can help you grow your funds: With only a $500 minimum deposit, you can take advantage of a high yielding 13-month CD at 4.16% Annual Percentage Yield (APY) or a high-yielding 24-month CD at 4.58% APY.
Working Toward Your Financial Goals, Together
No matter your financial goals, Academy Bank is here to help you meet them. We’re proud to offer our clients our Select Rewards Checking Account, Premier Money Market Account, and CD Accounts, bringing you the value you deserve.
** Benefits are available to personal checking accounts and their primary account owner and joint account owner(s) subject to the terms and conditions set forth in the Guide to Benefit and/or insurance documents for the applicable Benefits. Some Benefits require authentication, registration and/or activation. Benefits are not available to the "signer" on the account who is not an account owner or to the businesses, clubs, trusts, organizations and/or churches and their members, or schools and their employee/students.
Direct deposit required. Maximum ACH credit is $15,000.00.
No fees for withdrawals, transfers, balance inquiries or denied ATM transactions at ATMs in the MoneyPass® Network if you have a MoneyPass® logo on the back of your card. MoneyPass® Network ATMs are within the U.S. only.
Message and data rates charged by your mobile phone carrier may apply.
Deposits are subject to verification and not available for immediate withdrawal. Deposit limits and restrictions apply.
Free e.Statements or $5 paper statements for Select Rewards.