Use a mix of savings account types

There are many savings vehicles. However, diversification is the name of the game. The basic tools include:

  • Checking Accounts
  • Savings Accounts
  • Certificates of Deposit (CDs)

All the above accounts are FDIC insured (be sure to check yours!).  FDIC accounts are usually insured to $100,000. Checking accounts seldom have interest accruing, but give check writing privileges, so if this is important, set up a checking account.

Internet-only banks tend to have the highest interest rates but you can check our site for some of the most attractive:

A few guidelines for the effective use of savings and checking accounts.

  • Use a mix of Internet-only accounts and a local bank or credit union.
  • Check this website frequently for some of the best rates around.
  • Never pay for billpay services—most banks offer these services free. Save a stamp and an envelope!
  • Finally, be aware of Internet “phishing” scams. Also secure your PC with antivirus and anti-malware protection!!

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