You say interest, I say dividend.
Do you know your regular allowance, gift money, and pay from your jobs can earn you more money?
When you put your money in your credit union savings account, it's called investing.
When you invest, you earn more money, called a return. Interest earnings are a common form of return on investment.
AJ's has two calculators to compare different ways your investments earn interest at your credit union:
- How a Lump Sum Investment Grows lets you try your hand at investing different amounts of money on a one-time basis. Example: $100 the day after your birthday.
- How a Periodic Investment Grows shows you what happens when you invest the same amount of money weekly or monthly. Example: $5/week or $20/month.
Have you thanked your piggy bank?
How do these investments differ?
The way you invest determines how you name it. If you invest money one time, you call it a lump-sum investment.
Lump-sum investment example: You invest that brand-new $100 bill your grandmother gave you for your birthday.
If you invest money on a regular basis, you call it a periodic investment.
Periodic investment example: You decide to invest ¼ of your allowance every week to start a my-next-cool-thing fund.
When you invest money in your savings account, your account balance grows like an upside-down pyramid...
Hawaii Law Enforcement FCU
What makes credit unions so great? Members like you.
Every dollar you invest in your credit union earns you money while other members borrow it.
When you're ready for a loan, other members' savings will be there to help you out at the lowest possible cost.