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:
- Savings Account Rates
- Money Market Account Rates
- 3 Month CD Rates
- 6 Month CD Rates
- 12 Month CD Rates
- 24 Month CD Rates
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!!