By Lee Gardner
Obviously we are in a “borrower’s market” as opposed to a market that favors the saver or investor. Even if you choose much riskier investments, the returns can be low. Recently the Federal Reserve announced its intention to keep short-term rates at these historic lows at least into 2014. It also announced ongoing strategies to keep long-term rates low as well.
So, what do the rates look like? Regular savings accounts are paying only .10% even at credit unions. Certificate rates begin at .20% for six months and even a term of five years will earn only 1.15%. U.S. Treasury investments are even lower with the five-year bill yielding only .72%. Investments that earn more typically mean taking on the risk of losing principle.
But we have encouraging news. The “cooperative relationship” we have with members who use many of our services makes it possible for us to “pay them back” with a dividend rate that is far better than the market. As a matter of fact, our board recently announced a rate of 1.25% (Annual Percentage Yield) on Payback Savings for three months – from February to April. With our Payback Savings you get:
- Above market earnings at 1.25% APY
- There’s no minimum or maximum balance required
- Your money is always available; no penalty or fee for early withdrawal
In addition, like all Family Trust members, your deposits are insured up to $500,000. Family Trust is the only institution in this area to offer private deposit insurance of $250,000 in addition to the $250,000 federal government insurance
I feel confident in saying the Family Trust PayBack Savings account has among the highest returns with the lowest risk. It’s our way of “paying you back” for being a good credit union member.
To learn about account terms and how to qualify for PayBack Savings, you can call 367-4100, visit any of our seven branches or click here.
Lee Gardner is president and CEO of Family Trust.