Savings accounts, money market accounts and CDs: What are they and which is right for you?

• Low minimum balance requirements
• Low or no fees
• Easy access to your funds through the bank or ATMs
• Easy to set up automatic transfers from your checking account

• Higher interest rate than savings accounts
• Ability to write checks, make electronic transfers and make ATM withdrawals

• Higher interest rate
• The security of a fixed return over a set amount of time, typically anywhere from three to 60 months

• Lower interest rates
• Limited number of withdrawals per month

• Lower interest rates
• Higher minimum deposit and minimum balance required to avoid monthly fees
• Limited number of checks and automated withdrawals per month.

• Can’t access your money until the CD maturity date
• Penalties for early withdrawal

• You have a small balance and want to avoid paying fees
• You’re trying to build an emergency fund or save for a specific short-term goal, like an upcoming vacation
• A savings account can be an ideal first account for a child to help teach them how to save their money

• You have enough money to meet minimum deposit requirements and you’re saving for a short-term goal
• If you have a savings account that’s accumulated a large amount of money, consider moving some or all of the funds to a money market account with a higher interest rate so your savings can grow faster

• You have a lump sum of money that you know you won’t need for several months or more. For example, if you have funds saved for a down payment on a home that you don’t plan to buy for another year