Are you saving money in the right place?
The best place to save money depends on your financial goals and preferences. Also consider how long you want to save.
If you’re working toward a savings goal, you have many options for where to put your cash. Savings accounts, certificates of deposit (CDs), money market accounts, cash management accounts and investment accounts are all possibilities.
Which should you choose? That depends on how far away your goal is, how much you hope to earn on your cash and how often you want to access it. Here’s how to decide which savings or investment vehicle is best for you.
Factors to consider when stashing your savings
The features of different accounts can help you select the right savings vehicle. When deciding where to stash your savings, consider:
Access to withdrawals. Some accounts—such as CDs and retirement accounts—charge a penalty if the account owner withdraws money before a certain time. If you think you’ll need to access your cash soon, that will affect your account choice.