Best Savings Vessels Right Now with Aaron Caid

Faith & Finance

There’s a saying, “Any port in a storm.” Does that apply to your savings?

The economic waters seem choppy these days, so where’s a safe harbor for your savings that still gives you a return? Aaron Caid helps you plot a course for your money today.

Aaron Caid is the Chief Marketing Officer at Christian Community Credit Union, an underwriter of Faith & Finance.

Understanding Savings Options

If you've ever wondered which one is right for you, here are the basics of each type of account so you can determine which best suits your needs.

Savings Accounts: The Basics

Savings accounts are a safe, insured, and highly liquid option. Most people use them in tandem with checking accounts, making them ideal for new or low-dollar savers. One downside is that interest rates can be lower than other products, as they fluctuate with market conditions. However, CCCU offers a high-yield savings account that provides competitive returns and is a great option for those looking to grow their savings.

Money Market Accounts: A Step-Up

Money market accounts are another safe and insured option. These accounts often provide higher interest rates than savings accounts, and the more you deposit, the higher the rate you’ll typically receive. However, it’s important to distinguish between money market accounts (which are insured) and money market mutual funds (which are not). Money market accounts are an excellent option for those with larger balances who are still looking for liquidity.

Certificates of Deposit (CDs): Locked-in Rates

CDs are a solid choice for those seeking higher interest rates and willing to lock their money away for a set period. These accounts offer fixed rates for terms ranging from a few months to several years. While CDs are less liquid—meaning withdrawing early can lead to penalties—they provide stability and typically offer better returns than savings or money market accounts. CCCU offers various CD options that align well with long-term savings goals.

U.S. Savings Bonds: Safe, But Long-Term

U.S. savings bonds offer another secure savings option backed by the U.S. government. A unique benefit is that earnings are often exempt from state and local taxes, and some bonds adjust with inflation, providing a hedge against rising costs. However, bonds are a long-term commitment with maturities typically lasting 20 to 30 years. While they’re less liquid, with penalties for early withdrawal, they can be a solid option for those with a long time horizon.

Choosing the Right Option for You

So, how do you choose the right savings vehicle? There are three key factors to consider:

• Time Horizon: How long can you let the money sit before you need it?
• Liquidity Needs: Do you need immediate access to your funds?
• Risk Tolerance: Are you comfortable with the stability of your savings, or are you seeking higher returns with more risk?

Why Choose Christian Community Credit Union?

CCCU has been a trusted banking partner for Christians for over 67 years. Not only are deposits insured up to $250,000, but they also have competitive rates on high-yield savings, money market, and CD accounts. To date, they have donated more than $6 million to ministry and mission projects in the U.S. and around the globe. Simply put, your everyday purchases help change lives.

If you want to learn more, visit joinchristiancommunity.com to explore your savings options with a faith-based approach.

On Today’s Program, Rob Answers Listener Questions:

• I've got a couple of IRAs, a 403(b) from when I was in the ministry, and a 401(k) that I'm actively contributing to at work. I'm almost 60 and unsure when I want to retire, but it probably won't be at 67. Should I start looking for more safe investments? And how should I go about combining these different accounts?
• My husband's company offers him early retirement at 62, with a lump sum payout of over $900,000 or a monthly income of $72,000 per year for life. We're concerned about the tax implications of each option and how it would affect us if he later decides to take Social Security, even though he's planning to wait to do that.
• Someone told me I could collect on my husband's Social Security, even though I'm 68, and he's 61 and still working. My benefits are low since I was a stay-at-home mom and only had a little work experience outside the home. Is it true that I can get up to 50% of his Social Security benefits?

Resources Mentioned:

• Christian Community Credit Union
• List of Faith-Based Investment Funds
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App

Remember, you can call in to ask your questions most days at [phone]. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.