If you’re looking for a smart strategy to get a higher rate of return while keeping your emergency fund or excess cash available, consider this idea to put your savings into tiers based on your needs over the next 12 months.

Divide your savings into three accounts based on your needs

• 12-Month Certificate up to 4.15% APY*
• 7-Month No Penalty Certificate up to 3.75% APY*
• Companion Savings Account at 3.25% APY* (linked to the 12-Month Certificate)

The funds in your Companion Savings Account are readily available for emergency or planned use, but you’ll earn a much higher rate than from a Money Market or regular Savings Account because it’s partnered with your 12-Month Certificate.

The funds in your 7-Month Certificate are also available with no penalty for an unexpected expense or emergency.

The funds in your 12-Month Certificate will be locked up for a year (unless you pay an early withdrawal penalty), so you should be fairly confident that you won’t need that money for a while. Remember that members with an Ambassador relationship also get one Certificate rate bump per year!

At Stanford FCU we’re always looking for ways to say YES to our members’ financial success, and hopefully this savings strategy will help you make smart decisions for your financial well-being.

*APY=Annual Percentage Yield. Membership eligibility is required.

Once a Certificate is opened, the rate remains fixed through maturity. Dividends are compounded and paid monthly. Early withdrawal penalties apply and may reduce earnings. The 7-Month No Penalty Certificate may be closed after seven (7) calendar days from opening with no penalty. The Certificate rates shown include a .50 bonus for active and engaged members through our Membership Rewards program.

The Companion Account rate is variable. For a Companion Savings linked to a Certificate account, dividends are calculated by the daily balance method which applies a daily periodic rate to the balance in the account each day.