Got a stash of cash in a jar on the dresser, under the mattress or buried in a tin can out back?
Put your money to work for you in a high-yield savings account instead. Interest-bearing accounts help you get the most secure return on your money.
If you are consistently making contributions, you might be surprised how quickly savings add up. Examine the savings account options below to find one that best fits your savings goal or financial needs.
Explore the differences and benefits of these four savings options
Where you stash your cash depends on three important factors: what you are saving for, how much you need to save and when you need to access it. Consider these different savings accounts to choose the best option for you or your family.
- Savings account: The perfect option for those just starting to save, a basic savings account will give you a place to stash cash and earn interest.
- Goal-specific savings accounts: Are you saving for a specific goal? Whether youâ€™re thinking of buying a home or need to start saving for college, you may be able to find accounts that not only help you save, but also reward you when you reach your savings goal. Look for features like automatic transfers, clear goal tracking and the potential bonuses when you reach your goals within a specific time frame.
- Certificates of Deposit (CDs): Depending on the term, CDs may offer the highest return on your investment. In exchange for the higher earnings, with most CDs you will have to leave your funds untouched for the duration of the term. If you end up needing your savings before the CD matures, you may incur a penalty for accessing or â€œbreakingâ€ the CD.
- Money Market Account: These accounts typically have a higher minimum balance requirement than standard savings accounts. However, stashing your cash in a money market account may also provide you with a higher interest rate. Furthermore, a money market is more liquid than a CD, providing penalty-free access.
Start saving today with an interest-bearing savings account. Savings accounts have interest rates that reap more return for consumers looking to make the most of their money. But, before you stash all your cash in one place, remember that with saving, just as investing, itâ€™s important to maintain a balanced portfolio. Consider which combination of accounts may suit your individual needs.
[Photo by angsthase.]
Sponsored content was created and provided by RBS Citizens Financial Group.