This blog is for informational purposes only and not an offer of any specific account or service. For current details on our high-yield checking accounts, certificates of deposit (CDs), free checking accounts, and other products, including terms and fees, please visit midflorida.com or speak with a representative. Account features, interest rates, and conditions may change. MIDFLORIDA Credit Union membership and eligibility requirements apply.
One of the best reasons to become a credit union member is the opportunity to earn interest on your money. In other words, your money will earn money.
Multiple credit union interest accounts are available, each with its own rules and interest rates.
How do you know which credit union interest account is best for you? That’s where this article comes in.
We’ve listed the most common credit union interest accounts so you can get an overview of how they work. We’ve even included suggestions on how and when to use them.
When you’ve finished, you’ll know more about what kind of interest-bearing account will work for you.
Start your application with MIDFLORIDA Credit Union.
Savings accounts, a.k.a. share accounts
A regular savings account is one of the most common credit union interest accounts. It's also known as a share account because it represents your ownership share in the credit union.
While these accounts may not offer the highest interest rates, they are typically the easiest type of interest-bearing account to open. They also have fewer restrictions compared to other interest accounts.
If you’re just starting to save money or need a readily accessible place for your funds, a savings account is a great option.
Club accounts
A club account can be your best friend if you’re saving for a specific event, like a summer vacation or Christmas shopping.
When you put your money in a club account, you won’t be able to access it until a specified date. This lets you save money without being tempted to spend it. It even gives you a higher interest rate and more money for your goal.
For instance, the MIDFLORIDA Credit Union Holiday Club account pays 2.00% APY on balances up to $4,000 and 2.00-.01% APY on balances over $4,000 a higher rate on its funds than a typical savings account.1 It disburses the money into your checking account on November 1.
If you put money in it regularly, you won’t have to worry about going into debt during the holidays.
High-yield savings accounts
A high-yield savings account might be for you if you want a better interest rate.
High-yield savings accounts have a much higher interest rate than regular savings accounts. However, they also have more restrictions.
The most common restriction is maintaining a minimum balance.
These types of accounts are best used to store money for which you have no immediate plans, such as:
- The money you’re saving for a goal
- Emergency funds
- The money you received as a windfall
Money market accounts
Do you like getting a higher interest rate but want easier access to your money? Consider opening a money market account.
These accounts usually have an interest rate comparable to other high-yield savings accounts.
However, they offer easier access to your money. Many people prefer to store their emergency funds in money market accounts.
Certificates of deposit, a.k.a. share certificates
Got some money for which you have no immediate plans? Put it in a certificate of deposit, or CD for short.
When you open a CD, you’re letting a credit union or bank keep your money for a period of time. At MIDFLORIDA, this can be from three to 60 months.
In return, you typically get a competitive interest rate. While longer-term CDs often offer higher rates, this isn't always the case. Interest rates can vary based on market conditions and specific financial institution offerings.
A CD is another great account to use if you’re saving for a goal. You can even use a CD ladder strategy to get the best CD interest rate while still having access to a portion of your savings.
Interest-bearing checking accounts
Interest-bearing checking accounts have become extremely popular over the years. These accounts function just like any other checking account, with the added benefit of earning interest on your money, provided you meet the monthly conditions.
Even better, the interest rate on an account like the MIDFLORIDA High Yield Checking account often matches those of high-yield savings accounts.
High-yield checking accounts are an excellent choice for a primary bank account. You get the chance to earn some extra money each month when you meet the account conditions. However, be aware that failing to meet these conditions may result in a maintenance fee.
Health savings accounts
Do you have a high-deductible health insurance plan? If so, then you probably have a health savings account.
Health savings accounts help you save money for your healthcare expenses. They can be an interest-bearing account, but that’s not a given.
The main benefit of a health savings account is that you can put in pre-tax dollars. In other words, you can deposit money into it from your paycheck, which won’t be taxed.
The advantage of credit union interest accounts
Credit union interest-bearing accounts typically offer more competitive rates than their banking institution counterparts. This advantage stems from the unique structure of credit unions like MIDFLORIDA.
As not-for-profit institutions, credit unions are owned by their members, not shareholders. This ownership model allows credit unions to return profits to their members in various ways, one of which is through higher interest rates on savings and checking accounts.
By choosing a credit union for your interest-bearing accounts, you're not just a customer – you're a member-owner, benefiting directly from the institution's success.
Open an interest-bearing account at MIDFLORIDA
Looking for a credit union that pays interest? You have several options.
A regular savings account is easy to open; It’s a great way to start saving money.
Money market accounts and certificates of deposit have higher rates of interest. They’re ideal for saving for goals or for storing an emergency fund.
No matter what kind of account you get, you’ll almost certainly get a better rate of interest than you would at other banking institutions.
If you want to open an account that bears interest, open a MIDFLORIDA account today.
If you’re a new member, you can even get a $200 bonus by signing up for a MIDFLORIDA Free Checking account, provided you meet the conditions.2
It’s a great way to kickstart your new money-saving plan, all with the personalized service you won’t get at the big banking institutions.
