OnPath Credit Union

Maximizing Your Savings: Understanding Annual Percentage Yield (APY) and Building a Strong Financial Foundation


In today’s fluctuating economic landscape, making smart money moves is more crucial than ever. One such smart move is to place your money where it can work the hardest for you. You don’t necessarily have to invest your limited funds into high-risk investments like stocks or cryptocurrency to earn a high yield on your dollars. OnPath Federal Credit Union members can earn an astonishing 7% APY* on average daily balances up to $10,000 (and 0.50% on balances above $10,000) in our OnPath Reward High-Yield Checking Accounts.

High-yield checking accounts have emerged as a popular option for savers looking for a balance of liquidity and interest, promising higher returns on your deposits while offering the same ease of use and safety as any other checking account.

High-yield checking is a great way to grow your savings every year, build a robust emergency fund and save for future purchases without losing access to your funds or having your withdrawals limited. 

Understanding APY: the Key to Growing Your Savings

APY stands for Annual Percentage Yield, which represents the total amount of interest you will earn on a deposit account over a year, taking into account the effect of compounding. Unlike simple interest, which is calculated on the principal alone, compound interest is calculated on the principal plus any accumulated interest.

For example, with a checking account offering 7% APY, like the one our credit union proudly offers, the interest compounds, which can lead to exponential growth of your savings. To put it into perspective, a 7% APY means that a deposit of $10,000 would grow to $10,700 in just one year, without any additional deposits. This rate is substantially higher than the national average for savings accounts, making it an attractive option for savvy savers.

You don’t have to take our word for it. Browse online and compare our rate to other high-yield accounts at major banks and credit unions around the country.

Building an Emergency Fund with High-Yield Checking

An emergency fund is a financial safety net designed to cover unexpected expenses or financial emergencies. Financial advisors commonly recommend having enough to cover three to six months' worth of living expenses. With a high-yield checking account, building this emergency fund becomes significantly more achievable.

The expedited growth rate provided by a 7% APY means your money works harder for you without the risks of uninsured savings or investments, allowing you to reach your savings goals faster. Moreover, the liquidity of a checking account means you can access your funds quickly in case of an emergency, providing both growth and accessibility.

Maximizing Your Returns: Tips and Strategies

You might be asking yourself, What’s “the catch?” That’s an understandable question, given how much higher 7% APY is compared to the free checking accounts typically available at most banks and credit unions. You should visit our OnPath Rewards High-Yield Checking page to learn more about what the account does and doesn’t include, but the basic qualifications are:

  • Be enrolled in e-statements and receive one for each statement cycle
  • Have 15 or more debit card purchases post and settle during each statement cycle
  • Login and use OnPath online or mobile banking at least once per statement cycle

Most of our OnPath Federal Credit Union checking account holders already meet these requirements each cycle, so you may not need to change your debit card or banking habits at all to benefit from our high-yield checking. 

If you can, keeping as close to $10,000 or more in your high-yield checking account is the best way to maximize the interest you earn in our high-yield checking account.

Take Control of Your Financial Future with High-Yield Checking in New Orleans

A high-yield checking account from OnPath Federal Credit Union, offering a substantial 7% APY, presents a golden opportunity for New Orleans banking customers looking to bolster their savings and build a strong financial foundation.

Ready to take control of your financial future and maximize your savings? Learn more about our high-yield checking account and start earning 7% APY today by calling 800.749.6193. Your journey toward financial stability and prosperity starts at OnPath FCU.

*APY=Annual Percentage Yield. APYs accurate as of 8/1/23. Rates may change after an account is opened. Minimum of $25 required to open a checking account. The following must be met each qualification cycle: (1) Log into online or mobile banking one or more times per qualification cycle (2) Be enrolled in and receive e-statements for the statement cycle, and (3) Have at least 15 debit card purchases post and settle within the qualification cycle.  If qualifications are met each monthly qualification cycle for Cash Back checking, members earn 5.0% cash back on up to $200 in debit card purchases for a maximum earning of $10 per month per account. If qualifications are met each monthly qualification cycle for High-Yield Checking: (1) balances up to $10,000 receive APY of 7.00%; and (2) balances over $10,000 earn 0.50% interest rate on the portion of balance over $10,000, resulting in a range of 7.00% - 0.50% APY depending on the balance (3) domestic, out-of-network ATM fees up to $10 per month will be reimbursed on the last day of your qualification cycle. Fees may reduce earnings.  If qualifications are not met on High-Yield checking, all balances earn 0.01% APY. Qualifying transactions must be posted to and settle on the account during monthly qualification cycle. Transactions may take one or more banking days from the date the transaction was made to post to and settle on account. ATM transactions do not count towards qualifying debit card transactions. “Monthly Qualification Cycle” means a period beginning one day prior to the first day of the current statement cycle through one day prior to the close of the current statement cycle. Go to www.beonpath.org to view the current Monthly Statement Qualification Cycle. To view our courtesy pay policy, go to www.beonpath.org/courtesy-pay.