Maximize Your Money: Discover Credit Union High-Yield Savings Options

If you’ve ever heard people talking about credit union high-yield savings accounts but aren’t sure what they mean, then this is the blog for you! We’ll explain what these accounts are, the different types available at Oxford Federal Credit Union, and why you might want to consider opening one.    

What Is a Credit Union High-Yield Savings Account?

First, let’s start with a more basic question: what is a savings account? As the name suggests, this is an account that is designed to help you save money. You deposit funds into it and in return, the credit union adds interest to your account.

Also called a dividend, interest is money that the credit union deposits into your savings account over some time. But why would they just give you money? Because savings accounts allow credit unions to borrow your money and loan it to other members. In exchange, they agree to pay you a fee (the interest).    

How much interest you receive is based on how much money you keep in the account and what interest rate the credit union offers for your account type. High-yield savings accounts earn more interest (aka a higher “yield”) than simple savings accounts.

Even a small amount of interest added to your savings regularly can grow your account quickly. So let’s take a look at some of Oxford FCU’s savings options. 

Share (Savings) Account 

A Share (Savings) Account is opened when you become an Oxford FCU member. With a membership fee of just $5, you can earn an annual percentage yield (APY*) of up to 0.10% while enjoying a range of perks:

  • No monthly fees
  • Free direct deposit 
  • Free automatic payroll deductions/transfers
  • Free Digital Banking, Mobile Pay, and more

While a Share (Savings) account won’t grow your funds as much or as fast as a high-yield savings account, it does allow you to set money aside for a particular goal or emergency expenses.

Share Certificates

Share Certificates at Oxford FCU typically pay the highest dividends and give you the most options for deposit amounts and terms. While you can choose how much money to put into a Share Certificate, and for how long, these funds are unavailable to you during the term without paying an early withdrawal penalty.  Features of Share Certificates include: 

  • Fixed-term lengths range from 3 months to 5 years
  • Longer terms typically offer higher interest rates
  • Automatic renewal upon maturity
  • Option to transfer funds to other Oxford FCU accounts
  • Suitable for individuals with extra funds they don’t need to access during the term
  • Can be used as collateral for Share Secured Loans

Your Share Certificate deposits are insured for up to $250,000 by NCUA. An additional $250,000 of coverage is provided by Oxford FCU through Excess Share Insurance (ESI). 

Money Market Accounts

One of the most flexible ways to grow your money is through a Money Market Account. Money Markets allow you to deposit and withdraw money and offer attractive dividend rates.

  • No monthly fees
  • $2,500 minimum balance
  • Larger balances can earn higher rates
  • Unlimited $50 minimum deposits
  • Three withdrawals are allowed per month with no penalty

Your Money Market deposits are insured for up to $250,000 by the National Credit Union Administration (NCUA) and an additional $250,000 through ESI.

Which Credit Union High-Yield Savings Account Is Best for You?

Well, that depends on your current financial circumstances and your long-term goals. Given that each account is different, it might be helpful to compare them side-by-side.   


ACCOUNT TYPE

MINIMUM BALANCE

TERM LENGTH

ACCESS

FEES

Share (Savings)

$5

None

No withdrawal restrictions

No monthly fees

Share Certificate

$500 to $1,000 (depending on term length)

3 months to 5 years 

Not until the term ends

Yes, for early withdrawal

Money Market

$2,500

None

3 withdrawals a month with no fee

No monthly fees or early withdrawal penalties

At Oxford Federal Credit Union, our mission is simple: to promote and enhance the financial well-being of our members. No matter where you are on your financial journey, we have a savings account option that works for you. 


OPEN AN ACCOUNT


*APY is annual percentage yield