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12 Months to a Better Financial Foundation—Step 7: Save for Something Special

Special purchases

When you have a large purchase on the horizon—a wedding, vacation, home improvement, or even just the upcoming holiday season—consider setting up a separate savings account for the purpose. With a specific financial goal and date in mind, divide the goal into the number of months available and then set up an automatic transfer from your regular account to your special savings account. The account can take the form of a regular Savings Account or Money Market Account to maximize earnings in the time you have. Having the money in a separate account makes it less visible and allows you to see the savings adding up quickly.

Holiday Club and Vacation Club Accounts

If the something special you’re saving for is holiday or vacation spending, consider opening a Holiday Club or Vacation Club Account. With this account you can set up weekly, monthly or semi-monthly automatic deposits and sit back and watch the money add up. Holiday Club accounts will automatically transfer to your Share Savings Account on November 1, just in time for the holiday season.* Vacation Club accounts transfer on July 1.

* A penalty applies if money is withdrawn prior to the scheduled transfer date. Accounts with a balance over $500 earn dividends.


If you’re looking to save for your child, grandchild, or other minor’s education after high school, consider opening a Coverdell Education Savings Account (ESA). Contributions to a Coverdell ESA are not tax-deductible, but amounts deposited in the account grow tax-free until used for allowed post-secondary education expenses. [LINKS]

Alternate retirement savings options

If your employer doesn’t offer a 401(k) or pension plan (where money is saved without being subject to immediate income tax), start a separate Savings, Certificate, Roth IRA, or IRA account on your own. Roth IRAs allow you to deposit money after taxes. When you withdraw the money, typically after age 59-1/2, you only pay income tax on the interest you’ve earned.* With a traditional IRA, you may contribute pre- or after-tax dollars and the taxes are deferred until withdrawal (after age 59-1/2).*

* With all IRA accounts, there are limits on how much you can contribute each year and when you can withdraw the money without penalty. Read the disclosures for any account carefully.

For questions about what type of account is best for your savings goal, consult your local branch or call us at 800. 992.8472.