2 Options for High-Interest Savings Accounts

If you want to get more out of your money, then you should consider putting it into high interest savings accounts because they are designed to bring in greater dividends. They work well for people who need to build up an emergency fund. They are are also great places to hold money while you are saving up to buy something, such as a car or new home.

Money Market Account

The money market savings account offers higher interest rates than that of traditional accounts. One of the drawbacks to this account is that it also has a higher minimum deposit requirement. Also, you may find that it limits the amount of withdrawals that you perform in a month. This can make it inconvenient for those wanting to use it as an emergency fund.

Certificates of Deposit

The CD also offers higher rates than the traditional savings account. This is the perfect account if you have short term savings plans. You will be given an established date for the locked rate. If you withdraw the funds before that date, you will lose accumulated interest. You should be certain that you will not need to use the funds until the established date of the CD in order to avoid withdrawal fees and penalties.

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