Close text version
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: https://bettermoneyhabits.bankofamerica.com/en/retirement/when-to-start-saving-for-retirement]
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: https://bankofamerica.com/deposits/savings/savings-accounts/].
