Where Do You Keep Your Savings?

Whether it is in an emergency fund or your savings for that upcoming vacation. you need a safe place to keep that money. There are several options available, each with their own advantages. Where do you keep yours?

Cookie Jar- Close to home, but you’re not making interest and you’re out of luck if something happens to it

CD-Certificate of Deposit is offered by a bank and yields a good interest, but the money has to stay in the bank for the specified amount of time or you’ll face penalties. This isn’t a good idea for an emergency fund.

Savings Account- Whether you have one at your local bank or in an online account, this is a great option for keeping your money safe and having easy access to it. Online savings accounts like Electric Orange from ING DIRECT and HSBC Direct Online Savings offer great interest rates that are much higher than those of traditional savings accounts from your local bank.

Money Market Account- These are very similar to savings account, only you can write checks against the account. They also tend to have higher interest rates which is good for you.  Online accounts, just like savings accounts, have higher returns so they may be your best option.

Whichever method you choose for saving, just make sure you are saving. Learning to save is an important skill and will help you out of trouble many times in your life.