- Save money to earn money!, One great reason to save money at Visions: dividends!* Your deposits in savings accounts earn a percentage back over time, and we offer excellent, competitive rates for our members. You'll notice our savings rates, including Share Certificates and Flex Money Market accounts, are always advertised with, APY, , or, Annual Percentage Yield, . You may also notice that in some instances, like our rates pages , we include the interest rate or dividend rate, too. Below is some information to help you better understand your savings accounts and related earnings at Visions., APY vs. Dividend Rates, Credit unions are required by regulation to state the rates of return on all savings accounts in terms of APY, or Annual Percentage Yield. This requirement ensures that you’re getting comparable figures from all credit unions – advertised fairly, consistently, and without deception. It’s one of the many ways we aim to be transparent and accountable to our members., APY – expected earnings, This number is an annual rate that forecasts annual earnings for a savings account. Given as a percentage based on the account balance, APY is a projection that represents the expected amount of earnings after dividends accrue and compound for a full year., Dividend Rate –, , active interest, The dividend rate is an annual rate of return used to calculate daily and monthly earnings for a savings account. Given as a percentage based on the account balance, this rate is active on the savings account, accruing interest daily based on the average daily balance, and compounding monthly. By knowing your accounts' dividend rates, you'll have a more accurate expectation for your monthly…, The big difference between the APY and dividend rate is the compound interest., Here's an example* that demonstrates the relationship between the two rates. Given an initial balance of $50,000, let’s track one year of dividends at 2.25% APY, which earns a dividend rate of 2.23%. Duration Balance New Dividends Total Earnings 0 months $50,000 $0 $0 1 month $50,092.92 $92.92 $92.92 2 months $50,186.01 $93.09 $186.01 3 months $50,279.27 $93.26 $279.27 4 months $50,372.71 $93.…, This total is the , approx. balance , after one year of , dividend deposits., $94.83 , This column , contains monthly , deposits at 2.23% , Dividend Rate., $1,126.47, This final total , represents the , return at 2.25% APY., The chart illustrates how dividends are credited monthly – and how they compound over the course of a full year. Although the dividend rate in the example (2.23%) appears lower than the APY (2.25%), the account accrues enough compounded dividends after 12 months to produce the projected APY ($1,126.47 is approximately 2.25% of $50,000). , For our current savings rates, please visit., visionsfcu.org/rates, ., Explore your savings potential using our , savings calculators, Learn about your, share insurance, for deposits at Visions., *Please note, these numbers are examples only, used for illustrative purposes. It’s also helpful to note that savings accounts at Visions accrue dividends based on the number of days in the month. E.g.: January accrues for 31 days, February accrues for 28 days, etc. As a result, an account’s dividend deposits may be higher for January than February, even if that same account has a slightly higher…
- Prioritizing, Planning, and Paying it off, There is no “one size fits all” solution in the world of finances. People find success with different approaches to debt., Research and organize, In the same way that decluttering your home begins with a huge pile of clothing, you can start to declutter your “pile” of debt by gathering all your details in one place. Analyze it side-by-side and determine which items you need to get rid of first. When dealing with debt, it helps to know the details. Collect as much information as you can for each item. Store credit cards, past-due utility…, Plan your payments, Find a strategy that works for you or invent one that suits your needs. Popular strategies to consider include the “avalanche” method, the “snowball” method, and loan consolidation., Avalanche method, - When a loan has a high APR, it costs you more money each month, because a larger portion of that minimum payment is going towards interest rather than principal. As a result, paying down debt with the highest APR first will save you more money. Think of the chunk of snow at the top of an avalanche breaking off and falling away, taking other pieces of the mountain with it. By breaking off that…, Snowball method, - You pay off a little loan and how does it feel? It feels great! Don’t stop there, though. Apply the amount you were paying for that loan onto the next smallest loan and it’s easier to pay off. This is how your little snowball gains momentum to pay off your debt. Each payoff is a boost to your financial morale and compounds to become larger payments for your larger debt. This method doesn’t have…, Consolidation, - Instead of paying on a bunch of loans, spread over a bunch of institutions, make one smaller loan payment, and pay less interest. We regularly see success stories of members consolidating their debt to save hundreds of dollars every month and enjoy the ease of automatic payments., Pay down your principal, Your principal balance determines how much you pay on interest. Less principal means less interest. Find ways to cut down your debt by periodically making extra payments. These funds could come from: Income that isn’t allocated in your budget, such as a bonus or inheritance Unspent budget, such as food and entertainment expenses Tax refunds or government benefits Side job or temporary employment, Reasons to be careful, Don’t drain your savings. If you’re taking all your savings and putting it on your credit cards and loans, what happens when an emergency comes up? Without any savings in place, you might put these expenses back on your credit cards and continue the cycle of debt. Don’t let fees and penalties expand your debt. Know which loans have additional charges or threaten lawsuits, then plan ahead to avoid…, Need help? Connect with a debt expert., If you’re ready to make a debt-free life a priority, simply fill out the online form to get started. A real, live person will get in touch to talk about your particular situation and offer solutions. Visions cares, so we make the conversation easy. Get started today
