What are the different types of savings accounts?
Banks offer a variety of ways for you to save your money and earn interest. The most common accounts are: Basic Savings Account The minimum deposit requirement for a basic account is low, from $5 to $200. Your money earns a relatively low interest rate, but you can put money into and take money out of your account whenever you want. Basic saving accounts are also called passbook accounts. Certificate of Deposit (CD) This account earns a higher interest rate than a regular savings account, but you have to make a larger minimum deposit, generally between $1,000 and $5,000. You also have to keep your money in the CD for a certain period of time. If you take your money out before the end of the term, you may have to pay a penalty. Money Market Accounts This account earns a higher interest rate than a regular savings account, but you have to make a larger minimum deposit, averaging between $500 and $2,500. This account also limits the amount of times you can take out money each month.
