Savings balances typically earn interest that compounds daily and is deposited into your account monthly. You can find the best savings accounts at online banks, brick-and-mortar institutions and credit unions. They’re often used to hold emergency funds and save for short-term goals like a down payment on a house or an upcoming vacation.
What are the different types of savings accounts?
Traditional savings accounts. These are regular savings accounts available with the majority of banks and credit unions that may or may not earn variable interest. High-yield savings accounts (HYSAs). HYSAs earn interest rates that beat national averages and rates available with most traditional savings accounts. Money market accounts (MMAs).
Are savings accounts interest-bearing or dividend-earning?
Interest. Savings accounts are interest-bearing or dividend-earning accounts. The interest or dividends you can earn depends on your account balance, how long you leave funds untouched and the institution’s interest rate and compounding frequency. Savings accounts carry variable interest rates that are subject to change.
