There are plenty of options where you can store and grow your hard-earned savings. These accounts all come with different requirements, purposes and benefits that you might be interested in. It all depends on what you’re looking for.
Learn about these 8 savings accounts and what they have to offer.
1. A Basic Savings Account
This is your traditional, regular, run-of-the-mill savings account. It will be available at just about every bank, credit union and challenger bank (aka “neobank”) across the country. It is often very easy to open and maintain, with low initial deposits and average daily balances (ADBs). Some banks will even allow you to apply for this type of account for free.
A basic savings account is a secure space to deposit your savings and let them grow. However, your savings won’t grow very quickly. The interest rates attached to basic savings accounts are quite low in comparison to other savings accounts. They do not offer high annual percentage yields (APYs). Expect to receive an APY of 1% or less.
2. A High-Yield Savings Account
![](https://demotix.com/wp-content/uploads/2023/01/A-High-Yield-Savings-Account-780x605.jpg)
A high-yield savings account is similar to a basic one, but with a higher interest rate attached. As the account name implies, the interest rate will result in a high annual percentage yield. Expect to receive an APY between 3-5%, depending on the bank.
3. A Money Market Account
A money market account (MMA) is another type that comes with a higher interest rate than a basic version. Similar to a high-yield savings account, you can expect to receive an APY between 3-5%, depending on the bank.
Think of a MMA as an amalgamation of savings and a checking account. As an MMA user, you will have access to a debit card to make transactions or ATM withdrawals. You will also have check-writing privileges.
4. A Certificate of Deposit
A Certificate of Deposit (CD) is a savings tool that essentially locks away your funds for a set term and lets them grow with interest. That term could be as short as one month or as long as ten years. The longer the term, the higher the interest rate is likely to be.
Typically, CDs have higher interest rates and APYs than basic savings accounts. You can expect an APY between 3-5%, depending on the bank.
CDs should be used to grow savings that you don’t desperately need. So, a CD is not an ideal place to store your savings for an emergency fund. If you make withdrawals before your CD has fully matured, you’ll have to pay a penalty. It’s better to leave the funds alone and let them grow uninterrupted.
5. A Cash Management Account
![](https://demotix.com/wp-content/uploads/2023/01/money-780x551.jpg)
A Cash Management Account (CMA) is a cash account that’s commonly offered by brokerage firms and robo-advisors. When a user deposits a large sum in a CMA, the brokerage firm or robo-advisor divides up that deposit into multiple accounts available at different banks — these can be savings accounts, checking accounts, etc. Moving funds into these accounts can help the users access features like interest rates, debit cards and check-writing privileges. Most importantly, moving the funds can provide proper insurance coverage.
The Federal Deposit Insurance Corporation offers insurance coverage for up to $250,000 per depositor and depository institution. This means that even if an FDIC-insured bank fails, you won’t lose the money that you’ve saved. People that have more than $250,000 can use a CMA to spread their funds throughout different banks (depository institutions) to maintain that level of protection.
6. A Joint Savings Account
Most savings accounts are presented as financial options for individuals, but did you know that many of them can be shared?
Joint savings accounts are excellent options for couples that share living expenses and financial goals. For instance, a married couple that owns a house could use a shared account to put together a household emergency fund. Since it’s a joint account, either user will have access to the funds when they need to make a withdrawal and resolve an emergency expense.
There are risks that come with a joint savings account. Both users have equal claim over the account balance, even if one contributed more than the other. If one user decides to empty the account on a whim, they do not need the permission of the other user to do so — and they do not need to make repayments. So, when you open one, you should do it with someone that you really trust.
There are benefits that come with this type of savings account, too! One of the biggest benefits is that it doubles the FDIC coverage for your deposits. Since you have two depositors attached to the account, your funds will be insured up to $500,000 — not $250,000.
7. An Emergency Savings Account (ESA)
An emergency savings account is an employer-sponsored savings plan designed to help employees manage urgent, unplanned expenses without trouble. The employer deducts an approved amount from the employee’s paycheck every month and transfers it into the ESA. The balance grows with each contribution, eventually turning into a reliable safety net.
Some employers offer matching contributions for ESAs to encourage employees to open accounts and fill them.
Without an ESA, you should put together a personal emergency fund. Your personal emergency fund could be in a basic savings account. Or, if you want to boost those savings with higher interest rates, you could store the emergency fund in a high-yield savings account or money market account. Having those funds readily available can help you manage unanticipated and urgent expenses that are outside the parameters of your monthly budget.
Without any of these types of emergency funds, you will have to look at alternative payment methods. One alternative you could try is applying for a personal line of credit loan. Check out the website CreditFresh to see whether you meet the qualifications to apply for a line of credit loan. If you do, you can fill out your application online. It can take as a little as a few minutes.
Your application could get approved. With an approved line of credit loan, you could use borrowed funds to manage the expense quickly and recover from the emergency. Afterward, you could repay the funds through a steady billing cycle.
![](https://demotix.com/wp-content/uploads/2023/01/emergency-savings-account-780x520.jpg)
8. A Health Savings Account (HSA)
A Health Savings Account (HSA) is a tax-advantaged savings account that allows users to save up money for qualified medical expenses that their health insurance plans won’t cover. The qualified medical expenses include deductibles, co-pays, dental care, vision care and over-the-counter medicines. With the help of this savings account, you can reduce your healthcare costs.
It is similar to a Flexible Spending Account (FSA). An FSA is a tax-advantaged, employer-sponsored savings account used to cover qualified medical expenses outside of health insurance coverage. The main difference with an FSA is that the user has a deadline. They need to spend their balance by the end of the year or else they’ll risk losing it for good. An HSA’s savings will roll over into the next year. You can keep building up your savings over time.
HSAs are not available to everyone. To be eligible for an HSA, you should be covered under a high-deductible health plan (HDHP). You cannot qualify if you’re enrolled in Medicare. You cannot have an FSA and HSA at the same time.
These accounts could help you sort out your savings. Find the ones that match your needs and try to open them!