Get Your Green On

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

When you have a large, foreseeable purchase on the horizon—a wedding, education expenses, home improvement, or even just the upcoming holiday season—consider setting up a separate savings account for the purpose. With PSCCU, you can have multiple savings accounts, one for each goal. Contact your local branch to rename your subaccounts to help you keep track of each one. 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 separate savings account.

In addition to regular savings accounts, special account types are also available to help you maximize your savings for certain purposes, including:

Holiday Club Accounts

If the something special you’re saving for is holiday spending, consider opening a Holiday Club Savings Account. With this account you can set up 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.*
* A penalty applies if money is withdrawn prior to November 1. 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.

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. Contact your tax advisor or a member service representative for details.

For questions about what type of account is best to help you reach your savings goal, consult your local branch.