 | Mark Kolarik is the President of the Kansas Teachers Community Credit Union, located in Pittsburg, KS, since 10-2002 and is a board member of the Kansas Corporate Credit Union located in Wichita, KS . He has been employed in the financial service industry for the last 31 years, having worked in several credit unions for 21years and 10 years in the banking industry. He holds a Bachelor of Business Administration degree from the University of Wisconsin-LaCrosse and is a Certificated Credit Union Executive. |
Banking & Finance
1969-12-31 18:00:00
Saving tips for 2011
Answer: My tip would be to set up a direct deposit of a payroll check or government check. The payment is electronically deposited into your account. There is no delay or chance the deposit will be lost.
Once the deposit is made, you can direct the deposit into any number of saving options. Most financial institutions offer savings accounts which typically pay the account holder a small amount of interest.
Another option might be opening a certificate of deposit. When a certificate is opened, the account holder selects the term of the certificate (# of months) and the amount you wish to deposit into the certificate. A certificate pays a higher rate of interest, however you cannot cash in the certificate until the maturity date. If the certificate is cashed-in early, a penalty is charged.
Finally, another option might be saving a small amount each month for a particular event. An example might be a Christmas Club savings account. Saving just $40 a month from January through November will result in a $440 Christmas Club balance. These funds can then be withdrawn (at no penalty), to pay for holiday expenses.
Many people will set up accounts for Christmas in addition to a savings account, that way they are not tempted to spend savings on all of those tempting holiday sales!
