What are the primary types of savings accounts?
Most banks and credit unions that you will visit will offer all of the classic savings accounts. There are three primary categories of savings vehicles: Regular savings account A savings account is a deposit account that accumulates interest on balances. These come in a wide variety of flavors depending on the frequency of interest posting, minimum deposits (if any), size of the account, and other features adopted by individual institutions. Money market account (MMA) Bank and credit union money market accounts typically pay higher interest rates than regular savings accounts, usually have a minimum deposit determined by the institution, and allow restricted activity, particularly withdrawals during each monthly period. Do not confuse this account with money market mutual fund accounts (MMFAs) offered by investment firms. MMFAs are just short term investments in a variety of mutual funds with which they have relationships. Certificate of deposit (CD) A CD is a contractual agreement bet
