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Mystery Solved: Best Sunmark Banking Products With Highest Rate of Return

Quick! What’s the best way to build your savings at Sunmark? If you’re struggling to answer that question quickly, or answer it at all, then you’re not alone.

To find out more about how well Americans understand the best saving methods, national financial services website GOBankingRates conducted a survey of 1,001 adults of all ages about their savings habits, including their knowledge of which banking products typically offer the highest rates of returns. The survey also asked about what specific savings products Americans are using, and what savings goals they have.

The results were sobering. A full fifty-five percent of the adults surveyed had no idea which banking products typically have the highest rate of return. Further, less than 20% were saving towards any specific goal. Worst of all, nearly 65% or respondents said they aren’t using ANY of the savings methods listed in the survey. That includes insured products such as bank and credit union accounts, as well as uninsured methods such as the stock market and stock-based retirement accounts.

Given these figures, it’s not a big surprise the banking product with the highest rate of return is also the one that has the lowest usage, according to the survey. That product is a Certificate of Deposit, commonly known as a CD, and it typically pays a higher interest rate than a regular checking or savings accounts.

CDs require you to deposit your money into an account for a certain time period — usually from one month to five years or more. The longer you’re willing to lock up your money in the CD, the higher the interest rate you’ll get. But, if you need the money before the CD matures, you’ll typically have to pay an early withdrawal penalty, so you lose the advantage of the higher yield.

The advantage of CDs is their interest rates, which are typically higher than other types of accounts like checking or savings. CDs are also insured by the National Credit Union Association (NCUA) up to $250,000 for each depositor, unlike non-banking investments such as stocks, which are uninsured.

You can check the current rates for all Sunmark account types by clicking HERE or call 866-SUNMARK (866-786-6275).

That time commitment for a CD may seem like a disadvantage, preventing you from having access to the funds if they are needed. But by building a “CD ladder,” you can access the typically higher interest rates offered by longer-term CDs without locking up your money for years.

To build a CD ladder, open several new CDs in sequence at regular intervals, such as every six months or every year. As they mature, you will have access to your cash at those intervals so there will be funds available for specific goals. No need for the money this time around? Then simply roll that CD over into a new Sunmark CD and take advantage of the typically higher yield while continuing to benefit from the lower risk of an insured deposit.

To learn more about creating a CD ladder and other methods to maximize your savings at Sunmark, just visit your local branch and talk with one of our Member Relationship Advisors. Additionally, you can also make an appointment with one of our Life Stage Advisors who can focus on your individual situation and help you with objective, easy-to-understand advice and guidance in support of your overall financial goals. To arrange an appointment, just go HERE and scroll to the form at the bottom of the web page.