4 Types of Money Savings Accounts

Everyone wants to make the most of their money. Whether you are saving for rent next month or a car down the road, it’s important to ensure your money is in the correct savings account.
 
At CreditBox, we’re always on the lookout for money-saving tips. Exploring savings accounts to get the most out of savings interest rates while meeting your needs is a great place to start. Let’s take a closer look at four types of money savings accounts:
 
 

1. Traditional (Regular) Savings Account

   
   A traditional savings account will do the job when you need to park your money temporarily. While traditional accounts are easy to open online or at a bank branch, they offer lower savings interest rates than other options and often incur monthly fees that can wipe out any interest gains.
    

2. High Yield Savings Account

   
   Often available through online banks, high yield savings accounts offer higher interest rates than traditional savings accounts, with less likelihood of a monthly fee. The net result of a high yield savings account is two-fold: you earn more monthly interest while saving on banking fees.
    

3. Money Market Account

Money market accounts combine features of traditional savings accounts with checking accounts. Often found at online banks, credit unions, and bank branches, these accounts offer higher interest rates than traditional savings accounts and often allow you to write checks against your savings.
 

4. Certificate of Deposit (CD) Account

   
   If you’re confident you won’t need access to your savings right away, you may want to consider a CD account, which offers competitive interest rates when money is locked in. These accounts can help you save for specific short or long-term goals with time on your side. The downside, of course, is the need to lock your money in. If you unexpectedly need the money before the maturity date, you will likely trigger a withdrawal penalty.

 
While it’s easy to put money in a savings account and forget about it, you could be missing out on solutions that could save you money or provide a greater return. CreditBox is ready to help you weather the peaks and valleys of cash flow. Whether you could use same-day funding for unexpected costs or a no-hassle, online installment loan, CreditBox features an easy application to help save you time and money. Restrictions may apply.