Four Places You Can Put Your Money

Is it just us or does financial lingo sound like it could be another language? We created this simple list so that you can make an educated choice about where to put your hard-earned dough!

Checking Account 

  • Summary: This account offers a limited set of services at a low cost.  Account holders can perform basic functions such as writing checks, making purchases, paying bills, using debit cards or ATM cards, and giving or loaning money.  

  • Interest: If a student or low-income applicant opts for a no-frills checking account, they will not be charged fees for the use of personal checks and other services. 

  • Extra Fees: Banks may add extra fees if a check is written for an amount higher than the balance in your account.

Saving Account

  • Summary: These accounts keep money in a safe place while earning a small amount of interest. 

  • Interest Rate: The interest rate these accounts pay is higher than a checking account, but lower than a money market account or CD.  

  • Extra Fees: Some savings accounts charge a fee if your balance drops below a certain minimum. 

CD

  • Summary: An account holder agrees to keep the money in the account for a certain time period, anywhere from three months to five years.

  • Interest Rate: The rate of interest earned is based on current money market rates. It pays a higher rate of interest than a traditional savings account. 

  • Extra Fees: There is a considerable penalty for withdrawing early, so don't choose this option if you think you might need the money before the time period ends.
  • Get more info here.

Money Market Account

  • Summary: These accounts invest your balance in short-term government and corporate bonds. This includes commercial paper and treasury bills.   
  • Interest Rate: The rates tend to be a little higher than those on interest-bearing savings and checking accounts, but they frequently require a higher minimum balance to start earning interest. They also give you more access to your money than a CD. 

  • Extra Fees: A service fee is often charged if your balance drops below a certain level.
  • Get more info here.

 

 

 

 

 

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