How 6% APY Can Change Everything With Smart Money Checking

Learn how a simple strategy can yield 6% Annual Percentage Yield (APY)* on your savings, can maximize returns and completely change the trajectory of your financial future.

Here’s what they don’t teach you in school: for a truly prosperous financial future, it’s not always how much you make, but what you do with the money you earn. Here at Westerra, we want all Coloradans to make smart money moves. So, if your money is sitting in an account earning nothing for you, keep reading.

Hearing that ‘your money could grow 6% annually’ may not sound like much to you, so let’s run a hypothetical. Say you invest $5K in a 6% APY account. After just 12 years, that one-time investment would DOUBLE to become over $10K–and you’ve done absolutely nothing but let it sit. That same amount of money in traditional account earning mere fractions of a percent after 12 years? Yep, still just about 5K - and a few couch coins.

Great–how do I get started?

Open a Reverse-Tier Smart Money Checking Account

A lot of folks think you have to have a bunch of money to start making money. Some banks will require huge minimum balance amounts–out of reach for most Americans–to achieve a great APY. But that’s just not how we roll at Westerra. Here, you can open what’s called a ‘reverse-tier account’, and earn higher rates on lower balances, effectively offering the opposite of the traditional model.

We’re one of just a small handful of financial institutions offering this approach. Open a Smart Money Checking account and start earning 6% APY* on your first $2,000 each month.

Consider Other High-Interest Account Vehicles

Certificate of Deposits (CDs)

CDs are savings accounts with a time-stamp: they offer fixed interest rates for a specific time period, ranging from a few months to several years. CDs can often secure higher interest rates than regular savings accounts–just make sure you don’t need that money for the duration that it’s invested! (You CAN take money out early, it just incurs a penalty. So, try not to do that.) Check out Westerra’s CD rates today.

Money Market Accounts

It’s the best of both worlds: enjoy the features of savings and checking accounts AND earn higher interest, with more flexibility and liquidity than a CD. The only downside on Money Market accounts? Higher required minimum account balance. Start now and open a money market account.

Making the Most of 6%

You don’t need a finance degree to utilize your high-yield accounts effectively.

Keep the Party Going with Compound Interest:

‘Compound Interest’ simply translates to ‘money makes money’. Every year that your account grows, it means that 6% kickback gives you a larger amount of money back.

If you invest 10K at 6% APY for one year, you’d earn $600 in interest. (Woo!) Going into the second year, your account’s now at $10,600, and you’ll earn $636 in interest. Keep going at that rate, and your one-time investment would turn into over $60K in 30 years! The earlier you get in the investment game–and the longer you let your money sit–the better.

Automate Those Savings

You already subscribe monthly to TV streaming channels and utilities– now, make monthly investments for your future self. Set up automatic transfers to your checking account into that HYSA or CD to stay on track toward your financial goals.

A Bit Here, A Bit There…

As the phrase goes, ‘Don’t keep all your eggs in one basket.’ Diversify your financial portfolio by investing in a CDs AND money market accounts based on your liquidity needs and risk tolerance.

Use Your Resources

Investing is something between an art and a science: while these strategies ARE proven, the market–and your financial status–are ever-changing. Our Westerra pros are here to help you set up a tailor-made money management strategy and keep a continuing pulse on the market. Give us a call at 303-321-4209, stop by at your nearest branch location, or send us a secure message through Digital Banking to get started.

*APY= Annual Percentage Yield; qualification and restrictions apply, see link for more info: https://www.westerracu.com/spending/smart-money