Earn More From|
Your Bank Account
|1. Checking account.
Interest-bearing checking accounts pay very low interest, require
minimum balances, and tend to come with more fees than
non-interest-bearing accounts. It's better to get a free
checking account, which is offered by many banks.|
|2. Savings account.
Most banks pay much less interest on a savings account than a
Money Market Account, so MMAs are almost always better deals.|
|3. Money market account (MMA).
MMAs are FDIC-insured savings accounts (unlike money market
funds, which are not insured.) Most MMAs let you write 3
checks per month. Banks require a minimum balance, usually between
$500 and $2,000. Many people settle for mediocre MMA rates
offered by a local bank; better offers are listed at BankRate's MMA Rate Search page.|
|4. Certificates of Deposit.
CDs pay slightly higher interest than MMAs, but you'll need to
keep your money deposited for a certain period (usually 6 months
to a year) or else you'll have to pay a withdrawal penalty. If you find yourself
tempted to spend money you've resolved to save, keeping it in
CDs can help you be more disciplined.|