Secondary Savings Account as Your Financial Safety Net

Each year, the possibility of a government shutdown brings uncertainty, and for many, that means the risk of furloughs. While you can’t control when or if it happens, you can control how prepared you are.

Why Save for Furlough?

Furloughs can mean going without a paycheck for an extended period. Having at least three months of essential expenses saved up can help you stay financially secure and stress-free. A secondary savings account is a simple, effective way to build that cushion.

What is a Secondary Savings Account?

It’s a separate savings account you can customize and manage independently from your primary savings. Think of it as your “furlough fund,” a financial buffer that’s easy to access but separate enough to avoid accidental spending.

How to Get Started:

1. Open a Secondary Savings Account – Log in to digital banking, hover over “Apply Online”, and select “Open Deposit Account.” Choose “Savings”, then select “Secondary Savings Account.”
2. Customize it Your Way – Give your account a meaningful name like Furlough Savings or Emergency Fund, something that keeps your goal front and center.
3. Automate your deposits – If you have a direct deposit or payroll allocation coming to the Credit Union, it is simple to set up some of that money to go into your “Emergency Fund.”
   1. Set up a “Recurring Transfer” in the mobile app:
      1. Select the Transfer & Pay icon at the bottom of the screen.
      2. Select Make a Transfer.
      3. Toggle over to the Schedule tab and tap Schedule a Transfer at the bottom of your screen.
      4. Select the account you want to transfer from.
      5. Select your Emergency Fund to transfer that money to.
      6. Select an amount you want to transfer between accounts. (Maybe start with $50 each pay day and after 26 pay days, you’ll have $1,300 saved up, plus interest. This might get you by to pay for a few things if furloughed next year.)
      7. Select Schedule and confirm the transfer.

Over time, your savings can grow if you take part of your salary increase and add it to your “Emergency Fund.”  Now, instead of saving $50 per pay, you might be able to increase it to $75, and have $1,950 in annual savings, plus compounding interest.

It’s times like this that remind us of how important establishing extra savings can be! Get started, today.

Related Content: Amplify Your Savings Strategy with Multiple Accounts