Summertime Savings is something offered from a credit union in the L.A. area. When I signed up, I can designate how much of my after tax pay gets funnelled into the Summertime Savings so that it would receive 3% APY. I chose $2,000, which is the maximum contribution for month. It’ll earn 3% interest that’s compounded from the beginning of the school year until the end. These funds are then transferred out in the summer months (June-August). I always pick July because that’s the month I don’t get paid from school.
It’s an easy way to save and earn some interest on my money. After doing it for one year, I love it. It has taught me to spend less and really budget because I don’t see my full pay. That’s why every month, I take home about $3,000 even though I really earned $5,000. By pulling out the money in July, we don’t have to budget for the missing $3,000 monthly income from school. So that way, it feels like I get paid every month and makes it easier to plan.
Since I essentially sock away $20,000 ($2000 for 10 months) and earn interest on it, I usually get close to $22000 at the end. Last year, we used a portion of it for a vacation and dumped the rest of it into our investments. Seeing that really great boost in our portfolio, I thought the monthly deduction was worth it.
If you are working in a school district, I would highly recommend this. You can always email me directly and I’ll send you additional information.