When it comes to saving money, one size doesn’t fit all. Whether you’re building an emergency fund, planning for a big purchase, or looking for a way to grow your savings over time, choosing the right account can make all the difference. But with so many options — Savings accounts, Money Market Savings accounts, and Certificates — it’s easy to feel overwhelmed.

Each option offers unique benefits and trade-offs, depending on your financial goals and how much access you need to your funds. Now is a great time to look at your savings strategy and decide if your money is working as hard as it can for you. Here’s what to consider when looking at your options.

Savings accounts

A Savings account is a great starting point for most of us. Offering a safe and easy way to store your money, these accounts are simple to open and maintain, with low minimum balance requirements. Plus, you’ll earn interest on the funds.

Pros of Savings accounts

• Low minimum balance: Many Savings accounts come with low or no minimum deposit requirements.
• Liquidity: Savings accounts allow you to make withdrawals and transfers, though there may be limitations on the number of transactions per month.
• Security: Your funds are insured by the FDIC (Federal Deposit Insurance Corporation) for banks or NCUA (National Credit Union Administration) for credit unions, protecting deposits up to $250,000.

Cons of Savings accounts

• Lower rates: While you earn interest, it is often lower compared to other savings vehicles like Money Market Savings accounts or Certificates.
• Restrictions on withdrawals: Some Savings accounts limit how many withdrawals you can make each month.

When to use a Savings account

• For short-term savings goals such as an upcoming family vacation, holiday expenses, or a large purchase you need to make in the near future.
• Building an emergency fund for unexpected expenses such as medical bills or car repairs.

Certificates

A Certificate is essentially a fixed-term deposit account where you agree to lock up your funds for a set period, often ranging from three months to five years. In return, you typically earn a higher interest rate than with a savings account.

Pros of Certificates

• Higher rates: Certificates typically offer higher rates than Savings accounts.
• Predictable returns: Since the rate is fixed, you know exactly how much you'll earn over the term of the Certificate.
• Safety: Like Savings accounts, your Certificate is insured by the NCUA (or FDIC for CDs) up to $250,000.

Cons of Certificates

• Limited access to funds: Your money is locked in for the term, and early withdrawals typically come with penalties.
• Fixed rates: If rates rise during your term, you won’t benefit from those increases.

When to open a Certificate

• For longer-term savings goals where you don’t need immediate access to the funds (e.g., saving for a down payment or retirement).
• If you’re looking for certainty with your returns and can lock away the funds for a set period without needing access to them.

Money Market Savings accounts

Money Market Savings accounts combine features of both Savings accounts and Checking accounts. They generally offer higher rates than Savings accounts while providing access to your money through checks or debit cards.

Pros of Money Market Savings accounts

• Higher rates: Money Market Savings accounts usually offer a higher rate than regular Savings accounts, making them a good option for those looking to earn more from their cash.
• Access to funds: You can make withdrawals, write checks, and even access a debit card, offering greater flexibility than a traditional Savings account.
• Security: As with Savings accounts and Certificates, Money Market Savings accounts are federally insured (by FDIC or NCUA).

Cons of Money Market Savings accounts

• Higher minimum deposit requirements: Many Money Market Savings accounts require a higher minimum deposit to open and maintain the account.
• Withdrawal limits: While you can access your money, some banks may limit how many transactions you can make each month.
• Rates may fluctuate: Unlike Certificates, the rate on a Money Market Savings account can change, often based on the broader economic conditions or the institution’s policies.

When to open a Money Market Savings account

• For medium-term savings goals where you want to earn a higher return but may need to access the funds with relative ease (e.g., saving for a major purchase or building your emergency fund).
• If you like the flexibility of being able to write checks or use a debit card while still earning better interest than a basic Savings account.

Don’t forget: You’re not limited to one savings vehicle. You can combine multiple accounts to maximize returns while maintaining access to different portions of your funds. For instance, you can keep some funds in a Savings account for short-term needs, place other funds in a Money Market Savings account for medium-term goals, and lock away a portion in a Certificate for higher returns on long-term savings.

Curious about your options? Explore our high-yield savings solutions and see how you can make the most of your money. Whether you're saving for a rainy day or a big future goal, we're here to help you navigate your financial journey with competitive rates and flexible solutions.