Savings Accounts

Savings Accounts

Having the ability to manage the household finances is literally a click away. From savings accounts to mortgages, there are many banks and services available online to accomplish any goal. One of the most important decisions a family can make is how to save enough money for the future. College tuition, a dream vacation, retirement - these things are costly and need planning well in advance. Saving money has never been easier with the choices available today. Investors have the option of regular savings accounts (including online savings accounts), higher interest-bearing money market accounts or certificates of deposit.

The first place to research is online banks. Online banks do not have the overhead of traditional or "brick and mortar" banks. The consumer who chooses an online savings account reaps these benefits by enjoying higher interest rates than those of regular savings accounts. Moreover, fees associated with online savings accounts are lower as well. It makes good fiscal sense to place money in a bank account that will yield the larger profit.

There are two other types of accounts that can be used for long term savings: money market accounts and certificates of deposit, or CDs.

Money market accounts are similar to regular savings accounts (both online and traditional) in that money is deposited and interest accumulates. The differences lie within in the startup and maintenance of the account. Generally, a larger sum of money is needed to open a money market account. While these types of accounts tend to yield higher interest rates, the minimum balance needed to keep the account open is higher as well. Withdrawals are limited to between three or six instances a month.

For long range savings with the highest interest accrual rates, certificates of deposits can be an ideal investment. Certificates of deposit (CDs) are purchased for a specific period of time - six months, one year, five years, or longer - and the bank pays out interest. At the end of the specified time, the CD matures, and the user can either cash in the CD, collecting the original investment plus all earned interest monies, or reinvest in another CD. Whereas a certificate of deposit can be a beneficial tool for saving money for the long term, an investor needs to pay careful attention to the terms and type of CD that is chosen.

There is never a bad time to start saving money. Whether a simple savings account, money market account, or CD is the chosen means of investment, finding the appropriate account is easy. Online tools and rate comparisons make banking available 24 hours a day, seven days a week. Saving today makes tomorrow a lot brighter.