Knowing where to put your money can make the difference between watching your balance grow steadily or watching it sit still. Instead of leaving everything in checking or letting cash idle, the smarter approach is learning how to split your money across accounts tailored to different goals.
With AZCCU’s suite of savings and investing options, you can create a strategy that protects your short-term needs, grows your mid-term savings, and builds toward long-term security.
How to Split Your Money Between Accounts: 5 Steps
Think of your money as something you guide stage by stage. Each step has its purpose, and together they create a flexible plan that adapts to your life.
1. Cover Your Base: Checking + Core Savings
You’ll always need money in a checking account for daily living—bills, groceries, utilities, and all the routine expenses. But that account shouldn’t hold more than necessary. Beyond what you need for the month, extra funds should be redirected to savings, where they can start earning dividends.
At AZCCU, even a basic savings account gives you a return on your balance. It may not be dramatic, but it’s still growth, which is something a standard checking account won’t provide. Think of checking as your cash register, and savings as the storeroom where your money can rest and quietly multiply.
2. Emergency Fund: Your Safety Net
Before chasing bigger returns, you need a cushion. An emergency fund is the first line of defense against unexpected expenses like car repairs or medical bills. Most experts recommend three to six months of living costs, but if that number feels overwhelming, start smaller. Even $1,000 set aside can make a big difference.
This fund works best in specialized personal savings accounts such as a Share Savings account or a You-Name-It™ account, which keeps your money accessible without penalties while still paying dividends. Once you’ve hit your emergency fund target, you can comfortably shift new contributions into accounts that focus on growth rather than just safety.
3. Short- to Medium-Term Goals: CDs, Sub-Savings, and Money Market
After your emergency fund is built, it’s time to plan for goals that are a little further out—anything from six months to three years. The right account depends on your timeline and how much flexibility you want.
Certificates of Deposit (CDs)
If your goal is less than a year away, a short-term certificate of deposit (CD) can be a smart choice. A six- or twelve-month CD matches well with that timeframe and usually pays more than a regular savings account. For goals one to two years away, longer CDs, such as 18 or 24 months, can help you lock in even better rates. We even offer CDs for up to 60 months, if you require them.
Money Market Accounts
For savings you want to grow but still keep accessible, a Money Market account may be the best fit. At AZCCU, a Money Market requires a $1,000 deposit but pays higher dividends than standard savings, while still allowing withdrawals if your plans shift. It’s a balance between growth and flexibility.
And then there are the smaller, everyday goals, like vacations, holiday shopping, or a new gadget. Here, the AZCCU You-Name-It account shines. You can create a separate bucket for each goal, name it, and track your progress.
4. Long-Term Goals: Retirement & Growth
Once your short- and medium-term needs are covered, it’s time to think of the big picture. Retirement, education, or legacy planning require funds that can sit untouched and grow over decades.
AZCCU offers IRA certificates, which allow you to lock in competitive rates inside a tax-advantaged account. Even modest monthly contributions to these accounts can compound into substantial growth over time. Because these funds don’t need to be accessed soon, they belong in accounts that may be less flexible but provide greater rewards.
5. Ongoing Rebalancing & Adjustments
Life changes; so should your financial plan. A new job, a growing family, or shifting priorities all affect how your money should be divided. Review your allocations at least once a year. Has your emergency fund target gone up? Are your medium-term goals closer than you thought? Can you increase your retirement contributions?
Instead of spreading new deposits evenly everywhere, direct them where they’re needed most. Sometimes that means topping up your emergency fund, and sometimes it means rolling a maturing CD into a longer-term one. The key is staying flexible and adjusting as life evolves.
The Building Blocks at AZCCU
Every stage of this roadmap is supported by accounts AZCCU offers.
- Share Savings / Share Account: This is the foundational savings account. AZCCU requires just $5 to open a Share Savings account.
- You-Name-It Savings Accounts: These let you set up multiple sub-accounts (each with its own name or purpose) under your membership, so you can separate savings goals (vacation, car fund, gift fund, etc.).
- Money Market Account: For balances that you want earning more than a basic savings account, but still relatively accessible. AZCCU’s Money Market accounts require a $1,000 opening deposit, and there are dividend tiers based on balance.
- Certificates of Deposit (CDs) / Share Certificates / IRA Certificates: These “locked-in” accounts offer fixed rates for a set term. AZCCU publishes competitive CD/IRA rates (for example, 12-month, 24-month, 36-month terms) for deposits starting at $1,000.
What to Watch Out For
Of course, even a good plan can stumble. Here are things to look out for when dividing your money:
- Locking up too much: Avoid locking up money you may need. Misjudged timing or emergencies can force you into penalty withdrawals.
- Overextending checking: If too much stays in checking, you lose out on growth.
- Ignoring rate changes: Keep an eye on AZCCU’s rates (such as checking & savings and CD rates) because rates can shift and new opportunities arise.
- Lack of automation: Manual transfers are harder to maintain. Automate splits so your allocations happen automatically. AZCCU offers automatic transfers between checking and savings.
Bringing It All Together With AZCCU
Learning how to divide your money between accounts bridges the gap between what you have today and what you want tomorrow. With AZCCU’s tools, including Share Savings, You-Name-It accounts, Money Markets, and CDs/IRA certificates, you can create a balanced plan that covers everyday needs, builds a safety net, funds near-term goals, and grows your future wealth.
AZCCU will help you start with the basics, help you automate where you can, and can revisit your plan as life changes. With a clear approach and the right AZCCU accounts, you’ll always know exactly where to put your money, and you’ll have confidence that it’s working for you.
Reach out to us today. Contact AZCCU online or call (866) 264-6421.
