The IFCU Blog

Looking to grow your money faster without the risks of the stock market? 

A high-return savings account at a credit union could be your secret weapon. It’s a type of deposit product that earns significantly more interest than a conventional savings account. The difference lies in the annual percentage yield (APY), which reflects how much you’ll earn over the course of a year, including compounding interest. 

When deciding between a bank or credit union, it helps to know that member-owned financial institutions often offer a better return than big banks due to their member-first philosophy, lower fees, and freedom from shareholders. With their focus on people over profit, many credit unions return earnings to members in the form of competitive interest rates, fewer monthly maintenance fees, and more personalized service.

In this article, you’ll learn how to get the most from a high-yield savings account, understand how APY works, and we’ll introduce one option that could even outperform your average savings account: IFCU’s Earn More Checking.

The Power of APY: Understanding What You’re Earning

Annual Percentage Yield (APY*) is the real metric that determines how fast your savings grow. More than just a number, it factors in how often your interest compounds, a detail that can make a big difference over time. In this section, we’ll break down what APY is, how it’s calculated, and why it’s your best tool for comparing high-yield savings accounts on a level playing field.

What is APY, and How is it Calculated?

Annual yield is the real indicator of how much your money earns in an interest-bearing savings account. Unlike simple interest, APY accounts for compounding returns, meaning you earn interest on your interest. This compounding effect helps your savings snowball over time.

The formula for your annual yield considers both the interest rate and how often that interest is compounded. The higher the annual return rate, the faster your balance grows, making it essential to look beyond just the basic rate when comparing secure savings vehicles.

Daily vs. Monthly Compounding

Not all compounding is created equal. Daily compounding means your interest accrues more frequently. In contrast, monthly compounding calculates interest less often, which slightly slows your earnings.

So, if you’re choosing between two top-earning savings accounts with similar APYs, check the compounding frequency. Daily compounding gives your savings a small but consistent edge.

The Importance of Comparing Apples to Apples

When you’re shopping around, don’t just grab the first high number you see. Compare APYs using the same benchmarks—like minimum balance requirements, monthly fees, and whether you're looking at a money market account, regular savings account, or a high yield account with tiered rates.

According to Bankrate, the national average APY for savings accounts is 0.57%. Many credit unions, including Industrial Federal Credit Union, offer rates far above this, helping members build wealth more efficiently, especially important in an environment of rising interest rates, without risking their principal.

Tips to Maximize High-Yield Savings Potential

Even the best high-yield savings account from a credit union can underperform if you don’t use it wisely. The good news? Small, strategic habits can make a big impact. This section covers practical tips that help you take full advantage of your account’s earning potential while staying aligned with your savings goals.

Keep a Consistent Balance to Earn the Full APY

To take advantage of a growth-focused savings account, you need to maintain the qualifying balance required to earn top interest. Some accounts offer tiered interest, where higher balances unlock better APYs.

Check the account’s terms carefully, especially if you're comparing it to a basic savings option. A steady balance keeps your money working for you.

Automate Contributions to Build Your Balance

Saving doesn’t have to be a chore. A simple yet effective way to save is by automating your deposits. Schedule regular transfers from your checking account to your savings, anywhere from $25 to $250 each month, to keep your balance growing.

Automating your savings helps you stay disciplined, build a financial cushion, and reach financial goals without thinking twice. It’s a low-effort, high-impact habit that fuels long-term economic success.

Avoid Unnecessary Withdrawals That May Limit Earnings

Some yield savings accounts come with withdrawal limits or penalties. Exceeding them can reduce your interest rate, or worse, get you disqualified from earning interest that month.

To get the most out of your account, deposit money regularly and allow your balance to grow undisturbed. Avoid using it like a bank account unless it’s truly an emergency or part of a larger, planned purchase.

Use It for Emergency Funds, Travel, or Major Purchases

A yield savings account isn’t just for stashing cash, it’s a goal-focused tool. Whether you're saving for an unexpected expense, a dream vacation, or a future down payment, this account type helps you grow your funds without taking on risk.

Think of it as your “slow and steady” solution. Unlike volatile investments, it provides stable, interest-bearing returns with minimal effort.

How Credit Unions Offer Stronger High-Yield Options

These member-driven organizations operate on a member-first model, which means they return profits to you in the form of higher APYs, lower fees, and more personalized service. In this section, we’ll explore how their structure sets them apart from for-profit institutions, and how that translates into real financial benefits for anyone looking to grow their savings.

Member-Owned Structure Means More Competitive Rates

Unlike big banks that prioritize shareholders, these member-owned financial cooperatives put people over profits. They're often insured by the National Credit Union Administration (NCUA), which ensures your deposits are federally insured and protected and that your institution operates with transparency. That means profits are returned to members, not investors, through lower fees, higher APYs, and better customer service.

Because of this structure, you’re more likely to find a yield savings or money market account offering returns well above the national average. It’s a win-win: greater growth on your savings and a more personal approach to managing your finances.

Local Knowledge and Personalized Recommendations

Local community-focused institutions understand the people and places they serve. That local insight translates to personalized advice, tailored savings strategies, and products that match your real-life goals, whether you’re building a rainy day reserve, saving for a home, or prepping for retirement.

Need help choosing between a high-yield account and a regular savings account? A credit union advisor can guide you based on your lifestyle and goals.

Feature Highlight: IFCU’s Earn More Checking (2.00% APY)

At Industrial Federal Credit Union (IFCU), the Earn More Checking Account flips the script by offering up to 2.00% APY*, a rate that rivals many high-yield savings accounts. And the best part? You still get full access to your money. This section breaks down how Earn More Checking works, what you need to do to qualify, and why it may be the ideal hybrid for savers who want both liquidity and strong returns.

The Unique Structure of Earn More Checking

This account differs from legacy savings products or money market accounts and combines the flexibility of checking with the interest-earning power of a top-yield savings option.

The account requires a minimum opening deposit of as little as $5, and while there is a $10 monthly maintenance fee, it's easily waived by following a few simple requirements.

Qualified members can earn up to 2.00% APY*, a rate that beats the national average, without requiring a large minimum deposit or locking away your money. It’s a simple way to put your money to work for you.

How Members Can Maximize This Benefit

To receive the maximum 2.00% APY, members must complete at least 15 debit card purchases (posted and cleared in the month).

Earn 2.00% APY* on balances up to $20,000. Any amount over $20,000 earns interest at the base rate in addition to the 2.00% APY* on the first $20,000. If monthly requirements aren’t met, the entire balance still earns interest, but only at the base rate.

Situations Where Earn More Checking Outperforms Traditional Savings

Earn More Checking can outperform a traditional low-yield savings account, particularly for members who already meet the qualifying activity through regular account use. It offers no recurring fees and provides immediate access to funds.

It may be suitable for:

• Members who prefer to keep funds readily available while earning interest

• Those who meet the qualifying activity as part of their normal banking routine

• Individuals seeking to simplify their accounts without sacrificing earning potential

Earn More Checking provides a way to combine transaction convenience with above-average interest rates in a single account.

Contact Us To Learn More

A top-earning savings account, especially through a not-for-profit lender, isn’t just a place to park your cash. It’s a tool for building financial success through smart habits, stronger interest earnings, and fewer fees. By understanding how APY works, keeping a consistent balance, and choosing the right institution, you can turn steady contributions into meaningful growth.

And if you’re ready to go beyond the basics, IFCU’s Earn More Checking offers a rare combo: checking account access with high-yield performance. With up to 2.00% APY* and simple qualifications, it’s a standout alternative to both traditional savings accounts and national banks.

Why settle for average? Explore your options at IFCU and see how much more your money could earn, whether you’re saving for a contingency fund, planning a large purchase, or simply looking for a smarter way to save money in an account that rewards you.

*APY = Annual Percentage Yield.