All Savings Are for Spending

You know what you want. You know how much it costs. Now all you need to do is figure out how you're going to pay for it. And that requires saving.

Your goals often dictate which savings vehicles are best. Are you saving for a long-term goal--college--or for a short-term goal--that sporty new convertible? Is waiting a year or two an option? Here are some savings vehicles and ways you can use them to meet your goals.

Regular/share savings keep your money safe and available. Credit union share savings accounts are insured to $100,000 by the National Credit Union Association (NCUA) a federal government insurance fund.  Regular share savings typically pay dividends comparable to or better than interest paid on other financial institutions' savings accounts.

Money market accounts (MMAs) are insured share savings accounts that offer limited check-writing privileges. They generally pay higher rates than regular savings accounts. Call FCFCU at 703-218-9900 (press 3) information about FCFCU's MMAs.

Share certificates also are insured savings carrying various maturity terms (typically six, 12, 24, or 36 months). Because you leave funds in the account for a fixed time, share certificates pay higher dividend rates than do savings or money market accounts. And the longer the term, the higher the dividend rate. If you withdraw your money before the term expires, however, you'll pay a penalty. There also is a minimum balance requirement ranging from $500 to $5,000.

No matter what your goal or choice of savings vehicle, FCFCU can get you started through direct deposit and payroll deduction. Your paycheck automatically is deposited to your FCFCU Checking account. Then payroll deduction regularly directs a certain amount to your savings account or accounts. And before you know it, you'll have what you need to make that purchase.

Shares:

The APY (Annual Percentage Yield) assumes that dividends are to be added to principal.  Minimum opening deposits for certificates (except where noted otherwise):$1000.  Substantial penalty for early withdrawal.  Share certificate account terms: Dividends are calculated by the Daily Balance Method which applies a periodic rate to the principal each day.  Dividends are compounded and credited monthly and at maturity.  The APY is quoted based on the assumption that dividends will remain in the account until maturity; a withdrawal will reduce earnings.  Minimums to open Savings - $25; Minimum Balance to avoid a low balance fee for savings - $100.; Vacation or Holiday Savings - $100.  All rates subject to change without notice.  Funds must remain on deposit for full term to achieve stated rate.  Fees could reduce earnings.  For more information about fees and rates for these accounts contact your local credit union office or phone (703) 218-9900.

Loans:

All rates and terms are subject to change without notice and credit qualification.  APR is Annual Percentage Rate.  Managed risk lending pricing is used for vehicle and personal loans.  Maximum interest rate for loans will not exceed the maximum allowed by law.  The APR for certificate secured loans are based on current certificate rate plus 2.500% and subject to change on CD maturity. 

HELOC and Home Equity Loans available only on primary residences in Maryland, DC, and Virginia.  Minimum line of credit is $10,000.  Maximum line of credit amount is $250,000 up to 95% Loan to Value (LTV). Variable rates tied to Prime as published in the Wall Street Journal.  Standard interest rate on up to 95% LTV is prime minus 1.000%.