5 Saving Tips for Your Next Economic Impact Payment

5 Saving Tips for Your Next Economic Impact Payment

Under a new stimulus bill, millions of Americans have received or will receive a third stimulus check. Third-round payments will be for $1,400 per eligible person, plus an additional $1,400 for each eligible dependent. Many families who have lost income during the coronavirus pandemic will need to use their checks to put food on the table or keep a roof over their heads. But if you’re still fully employed and not financially distressed, consider putting your stimulus check to work.

With many restaurants still closed and most events shut down, it’s more difficult to “waste” your third stimulus check on vacations, eating out, attending a concert, etc. So, instead of spending your third stimulus check on something you really don’t need, here are five tips for utilizing your funds.

Pay Off High-Interest Debt

If you have loans or credit card-dept, consider using your EIP to pay down your debts first! You should always pay down on the debts with the highest interest first! The sooner you pay those off, the less you will pay in interest.

Open a Share Certificate

If you know you won’t need to access these funds for the next few months, considering locking these funds for a given amount of time for a higher Annual Percentage Yield (APY). With a minimum deposit of $500 and terms ranging from three months to five years, you can start saving today, to enjoy later.

For more information on UKRFCU Share Certificate accounts and to see rates, please click here.

Open a Money Market

Enjoy higher dividend rates with UKRFCU’s Money Market Accounts. Choose between two money market shares that help you earn a higher yield on investments. Easily access your account online or on your mobile app. UKRFCU’s Money Market accounts offer members:

  • Higher-yielding Money Market rates
  • Minimum deposits
  • Six transfers per month
  • Daily compounding of interest with monthly posting

For more information on UKRFCU Money Market accounts and to see rates, please click here.

Fund Your Emergency Fund

While the unemployment rate is lower now than it was earlier in 2020, many people still don’t feel very comfortable about their employment situation. Even if you’re working now, the pandemic isn’t over yet. You could still experience a drop in income if your hours are cut, you’re quarantined, or you have to stay home with your children because their school buildings are closed.

Ideally, you should have at least three to six months’ worth of living expenses in a savings account. If you’re not there yet, your third stimulus check is a good start.

Fund Your IRA Account

Socking away money for retirement is always a smart move. You have until April 15, 2021, to invest in a traditional or Roth IRA for 2020. The maximum contribution for a 2020 IRA is $6,000 — $7,000 if you’re 50 or older — so you can stash your entire stimulus check there if you don’t need it for anything else.

If you’ve already invested the maximum for 2020, consider investing in a traditional or Roth IRA for 2021. The contribution limits are the same as for 2020. You have until April 18, 2022 (April 19 for residents of Maine and Massachusetts), to invest in an IRA for 2021, but the sooner you invest, the more time your money will have to grow.

For more information on UKRFCU IRA accounts, please click here.