Save allows you to allocate your deposits to your desired term length. Save’s term lengths are 1 and 5 years. First, customers must balance their liquidity needs vs. the potential APY* for their desired term.
As an example, if you predict you'll need your deposit in a year for buying a new house or paying for college, we advise you to allocate your deposit to a 1-year term. Alternatively, if the savings are meant to pay for college in 5 years or more, picking a 5-year term is more adequate.
Most customers have mixed liquidity needs or unknown needs. In these cases, a laddering strategy may be more appropriate. Laddering is a savings strategy to spread a lump sum of cash across multiple terms to take advantage of higher rates while freeing up portions of that money at short-term intervals.
A simple approach would be to allocate long-term needs to a 5-year term while splitting the rest between 1-year terms depending on the rates offered. For example, if a customer needs $50,000 for college after 5 years and the rest for an unknown length of time, we advise allocating $200,000 to a 1-year term and $50,000 to a 5-year term.