For some, it may mean savings in the bank. For others, early retirement. It might be being able to buy a second home for snowbirds or being able to take a romantic getaway for lovebirds. For others, it might just be being able to purchase the dream prom dress that a teenage daughter absolutely needs…without having to take out a second mortgage.
At every stage of life’s journey – and however you define it – Hughes Federal Credit Union helps its members achieve financial security. With a BauerFinancial 5-Star “Superior” Rating, Hughes is committed to its members at any age.
From helping a young person open their first savings account to specialty accounts and more, here are just some of the ways that Hughes can help!
Savings Accounts: Perfect for short-term goals like emergency funds and vacations and for understanding the value of building savings.
Pairing a checking account with a deposit savings account requires a lower minimum balance, which in turn provides a lower interest rate, and the added benefit of overdraft protection. In addition, savings accounts provide flexibility and greater access to funds, and they are a great way to help plan for vacation or holiday purchases. And don’t worry, your money is always safe with Hughes, as principal balances are federally insured by NCUA and Hughes boasts a 12.24 percent net-worth ratio.
Money Market Accounts: The ideal solution for lifestyle goals, such as automobile purchases and home down payments.
Opening a Money Market Account with Hughes is a great step toward achieving medium-term goals, as they provide members with higher interest rates. While MMAs typically require higher minimum balances to maintain, Hughes offers tiered options depending on your initial deposit, earning better interest rates in exchange for maintaining a higher balance requirement. Remember, like regular savings accounts, they also offer easy access to funds.
Certificate Accounts: A simple way to sock more away!
Instead of working for your money, have your money work for you with a Certificate Account, also known as a certificate of deposit (CD). For medium-term goals such as paying for college or a wedding – savings that will typically build over the course of years — CDs secure your money for a set amount of time called a “term.” The longer the term, the better the interest rate, so if you’re looking to earn a higher interest rate and don’t need to access the funds you’re saving, this is the account for you. Once a CD matures, funds are available for withdrawal or can be rolled over into a new certificate account with a new term. In that case, your interest is building interest! Like Money Market Accounts, you can earn interest for as little as a $1,000 Minimum Deposit, but keep in mind that with CD’s; withdrawing money before the end of a term will result in penalty fees, so it’s important to consider liquidity if that’s a factor in your financial plan.
Individual Retirement Accounts: Put the gold in your Golden Years.
Whether choosing a traditional Individual Retirement Account or a Roth IRA, specialty savings accounts come with tax benefits*. A traditional IRA allows you to defer taxes on your contributions and deduct the amount of your contribution on your federal income tax return for the year, while Roth IRAs give you tax-free withdrawals in retirement. Either way, with competitive rates and the added benefit of tax savings, both are important vehicles for long-term retirement planning.
Health Savings Account: Where health meets wealth.
If you qualify for a Health Savings Account, they are a terrific tool to set aside funds to cover medical expenses like regular copays, medications, procedures and equipment. Most importantly, HSAs are paid for with pre-tax dollars, allowing you to defer taxes on your contributions for qualified medical costs. But there are requirements: To qualify for an HSA, you’ll need to be covered under a high deductible health plan (HDHP).
Wherever you are on your path to financial security, speak to a Hughes representative to figure out the right plan for you!
*Consult a tax professional for more information.
- La seguridad financiera significa algo un poco diferente para todos. - May 22, 2023
- Financial security means something a little different for everyone - May 19, 2023
- ¿Dónde debo guardar mi dinero? - December 9, 2022
- Cómo arreglar su puntaje de crédito - October 3, 2022
- Hughes Helps Members Rebuild and Plan for the Future - June 3, 2020