Savings, money market or CD: Which account is right for you?

When it comes to your savings, you have options. When you’re considering money market vs. CD vs. savings, how do you know which account, or combination of accounts, is right for your goals? This comparison will help you understand how each savings product works and the ways you can use them to help achieve a savings plan that meets your needs.

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How they work

Regular savings accounts are basic accounts to help you build savings for short-term goals or unplanned expenses with easy, anytime access to funds. Plus, you earn interest.
FDIC-insured? ✓
Typical minimum balance required $300

Money market savings accounts provide easy access to your money, including check-writing privileges, plus they generally have a higher interest rate than regular savings accounts.
FDIC-insured? ✓
Typical minimum balance required $2,500

CDs typically have a fixed interest rate and a set maturity date—9 months, 12 months, 24 months or longer—and there may be a penalty if you access your funds before then. They generally have a higher interest rate than regular or money market savings accounts.
FDIC-insured? ✓
Typical minimum balance required $1,000

Ways to use them

Regular savings
Teaching your child about savings
Emergency fund
Vacation in 3 months

Money market savings
Savings beyond your emergency fund
Furniture, appliances or another big purchase in 6 months

Certificate of deposit
Gift money for a child
Tuition money for continuing education
Part of your retirement savings [Link:]
The overseas vacation you’d like to take

Timing is key

Your timeline and priorities will help you determine the best options to meet your goals. For example, consider the benefit of establishing a CD for your long-term goals from a portion of the balance in your regular or money market savings account: You may be willing to give up immediate access to your funds in exchange for a higher rate of return. Want to learn more about how these savings accounts work? Research Bank of America savings account options [Link:].

Whether you want to discuss the advantages of a Bank of America Savings Account, or CD, talk to a Personal Banker to find out more about your savings options.

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The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.

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