Our credit union in Harlingen is known for something that has lasted eighty-five years–and that is security. While we help VFCU members make the most of their finances, you can do your part by building an emergency fund in a savings account.
Take your time having extra cash or some savings at your disposal, and check out these steps to build up the funds that will surely save you in a pinch!
What’s an Emergency Fund?
An emergency fund is a cash reserve for unplanned expenses or financial emergencies, such as:
- Car repairs
- Home repairs
- Medical bills
- Loss of income
- Extra finances for unexpected outcomes
Use a Basic Savings or Money Market Account
Initially, your emergency funds can be linked to your checking account to gain access to your intentional funds. You want this type of savings account to be safe and secure; any form of stock or market bond should not access it. Learn more about a savings account or money market account.
Look For an Account That Pays You Back
The appeal of a credit union compared to a Harlingen bank is that credit unions will pay you a certain percentage of your finances after you secure a savings account with them. In a money market account, you should know:
- Dividends are paid on balances over $2,500.00.
- They are a low-risk way of making extra earnings on your savings.
- These accounts are meant to be used as a place to hold money temporarily before investing elsewhere.
Save Enough to Cover 3 – 6 Months of Expenses
The amount you may need for your emergency account will vary depending on your situation:
- Spouse with a job
- Wealthy parents
- The number of dependants
- Self-employed acquaintance
Start Small
It’s hard to have cash at hand all the time, but when you need cash, you should set up an automatic transfer to keep your funds stable. Therefore, depositing at least $100 (or less) a month, to help you save..
Only Tap The Account for True Emergencies
You can rely on your emergency funds to stay stable whenever life hits you with an unexpected turn. Although these types of funds are convenient for these situations, it’s essential only to use them for emergencies.
Replenish the Account If You Draw on the Funds
Even if you withdraw from your emergency funds, it’s strongly recommended to pay yourself back. For example, if you withdraw a certain amount of money, you should always deposit at least a half or more to keep those balances in check for the next time you may need them.
Try Out VFCU Savings Accounts!
Need finances to build up your emergency funds? VFCU has just what you need to find the right finances to get you back on track financially! With VFCU savings accounts and services, you can look forward to the following:
- Safe and secure accounts
- Earn a modest amount of interest as you save money
- With a minimum of $25, you can start and build up from there!
Follow us Online
Want to learn more about how to save? We share tips with our VFCU members online! You can also follow us on Facebook and Instagram.
