How do savings accounts work?

Savings accounts allow you to deposit money for safekeeping and earn interest on your balance. You can open these accounts at a bank or credit union. If you’re interested in opening a savings account, there are a few essential things to know about how they work. What Is a Savings Account?

What are the different types of savings accounts?

There are different types of savings accounts to choose from, and they’re not all alike. The options include traditional savings accounts, high-yield savings accounts, money market accounts, certificates of deposit, cash management accounts and specialty savings accounts. What are the best types of savings accounts, and which types should you have?

Are savings accounts a good investment?

Growth: Savings accounts are generally interest-bearing, meaning you will earn interest on the money you save in the account. Liquidity: Though savings accounts provide a place to stash money that is separate from your daily banking needs, they still let you make up to six withdrawals or transfers per statement cycle.