“The safest way to double your money is to fold it over and put it in your pocket”
Saving money is a goal that most people have throughout their life. When the time comes that you finally have some extra funds to set aside for a rainy day, it can be daunting to decide where you should put that savings. Should you put the money into a Savings Account, Money Market Account or Certificate of Deposit? So, what’s the difference between them and which one is right for you?
Our personal savings account allows withdrawals & access to ATMs, has a low minimum balance requirement, and low operating fees. If you believe you will need your money sooner rather than later, this is a great short-term solution.
Money Market Account:
This type of account requires a higher minimum balance, but it also provides a relatively higher interest rates compared to checking and savings accounts. So, you’re earning more while your money isn’t being used. This type of account is great if you have an influx of cash that you’re not planning to use in the immediate future but might want to tap into.
Certificates of Deposit (aka CD):
This type of account provides a wide variety of terms- including how long you set it aside, and a locked in interest rate for the duration of that term. While this type of account does have a minimum requirement, it does not have monthly fees associated with it. These are great options to give as a gift (like a graduation or child’s birthday). They are also a good option if you have an influx of cash that you know you will not need for a while.
When you’re contemplating what type of savings account you want to leverage, ask yourself some of these questions to help you decide:
- Will I need this money soon?
- Can I let this money alone for a year or longer?
- Do I have enough to fulfill the minimum balance
You can check out our full list of personal banking accounts here. And as always, feel free to reach out to one of our bankers for more information on our savings account options. As the saying goes, “a penny saved is a penny earned” so why not start saving now!