Key takeaways
Saving and budgeting are often the core pillars of financial planning, and with two-thirds of Americans feeling behind in their savings goals, knowing how and where to save is critical.2
Whether the financial goal is short, mid, or long term — this could include buying a home, preparing for a vacation, paying for education costs, or starting an emergency fund — a savings account may help people reach it.
Many types of savings accounts depend on savings goals and timeframes. Some people may want emergency savings for unexpected costs, and others may just want to feel more financially secure simply by having cash reserves.
From traditional savings accounts to money market accounts to CDs, here's a look at 12 savings account options.
Table of contents
Term length: Short, medium, or long
Traditional savings accounts are often suitable for everyday needs since they usually offer high-level security and easy access to funds. They may have minimum balance requirements and allow withdrawals and transfers with a debit card.
The primary drawback of traditional savings accounts is that they generally offer lower interest rates than high-yield savings accounts or other investment options. This makes them better for short-term savings and everyday expenses, but money can sit in these accounts for various term lengths.
Term length: Short or medium
As the name suggests, high-yield savings accounts may have a higher annual percentage yield (APY) — the percentage rate of interest earned per year — which may result in slightly more savings growth.
Some high-yield savings accounts may restrict account holders to a set number of withdrawals within a specific timeframe.
Some high-yield savings accounts may need account holders to maintain a minimum balance to get high interest rates. This makes high yield ideal for short and medium-term savings.
Term length: Short or medium
Money market accounts blend the features of savings accounts with some checking account capabilities, such as check writing. They may offer higher interest rates than traditional savings accounts, potentially helping savings grow faster.
However, money market accounts may have higher minimum balance limits, which can restrict an account holder’s liquidity. This means quick access to cash held in the account may be difficult.
Term length: Short or medium
A cash management account (CMA) is a savings account type that’s typically offered by nonbank financial institutions like brokerage firms or robo-advisors, which are typically not insured by the FDIC. CMAs blend features commonly found in both checking and savings accounts while offering competitive interest rates on uninvested cash.
It's a central hub for managing everyday cash, offering conveniences like a debit card, check-writing, bill pay, and direct deposit.
CMAs differ from traditional bank accounts by often sweeping deposits into partner banks, ensuring FDIC insurance. This structure enables CMAs to provide accessibility, potentially higher yields than checking accounts, and integrated investment access within one platform.
Term length: Medium
Certificates of deposit (CDs) provide a fixed interest rate over a specific term, which can range from a few months to several years. Funds in a CD are locked in for the term length, and withdrawing money early could incur significant penalties.
CDs typically provide higher interest rates, offering a guaranteed return if the funds are left untouched for the full term.
Term length: Short, medium, or long
Notice accounts offer a middle ground between highly liquid savings accounts and fixed-term CDs. With a notice account, users commit to providing a specific advance notice — such as 30, 60, or 90 days — before they can withdraw their funds.
In exchange for this waiting period, notice accounts typically offer a higher interest rate than standard high-yield savings accounts, but they don't lock money in as rigidly as a CD. This can be a suitable option for savers who want a better return on money that they don't need immediate access to.
Term length: Short, medium, or long
A guaranteed investment certificate functions similarly to a CD, except insurance companies issue them rather than banks or credit unions.
When purchasing a GIC, individuals deposit a lump sum of money with an insurance company for a fixed period (the "term"). In return, the company guarantees a set interest rate for that entire term.
GICs are typically a low-risk investment because the principal investment is guaranteed, along with the promised interest, assuming the issuing insurance company remains solvent. They offer predictable returns and may be more suitable for savers who prioritize capital preservation over higher growth potential.3
Term length: Short, medium, or long
A health savings account is a powerful, tax-advantaged savings account specifically designed to help individuals save and pay for qualified medical expenses.
To be eligible for an HSA, a person must be enrolled in a High-Deductible Health Plan (HDHP). These accounts typically have lower monthly premiums but require more out-of-pocket payments for healthcare services before insurance coverage begins.
Term length: Long
Retirement savings accounts are long-term savings accounts that individuals can only access after retirement. There are two main non-employee-sponsored retirement savings accounts:
IRA funds are generally less accessible before retirement than funds in a Roth IRA, with penalties for early withdrawals. The IRS sets annual contribution limits, so there's a limit to how much money can be put into these accounts. As of 2025, the IRS set limits are $7,000 for individuals under age 50, and a catch-up limit of $1,000 for people 50 and above.4
Term length: Medium or long
A 529 plan is a tax-advantaged savings plan that is one of the types of college saving accounts or types of savings accounts for kids, designed specifically to encourage saving for future education expenses.
Offered by states or state agencies, these plans allow contributions (made with after-tax dollars) to grow tax-free, and withdrawals are also tax-free at the federal level (and often state level) when used for qualified education expenses.
Should the original beneficiary not pursue higher education, the account owner can typically change the beneficiary to another eligible family member.5
Term length: Medium or long
Many banks and credit unions offer standard savings accounts with features and benefits tailored to students. These accounts recognize that students often have limited income and primarily focus on convenience and minimizing fees, including perks like:
These accounts serve as a practical tool for students to manage their money, save for short-term goals like textbooks or travel, and build healthy financial habits. Many major banks and online-only institutions offer such accounts, sometimes requiring proof of enrollment or an age restriction (e.g., under 25) to qualify for student benefits.
With different types of savings accounts to choose from, it’s important to consider a range of factors when selecting one.
Different accounts may offer varying interest rates, fees, and accessibility. Certain features may affect the ability to reach savings goals. Those shopping for a savings account should consider the following factors:
Certain savings accounts often align with a specific type of financial objective, so it's important to set saving goals before shopping around and comparing features before making a decision.
Each of these types of savings accounts has benefits and considerations. It’s critical to do thorough research and compare plans to decide on the best option, for short-, medium-, or long-term financial resolutions.
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