Build Your Savings

From regular savings accounts to share certificates, to IRAs and beyond, we appreciate that it can be tricky to keep all of the different saving account options straight. This article covers some of the most common types of savings accounts and their features.

1. Standard Savings Account: This is the most basic type of savings account offered by financial institutions. It typically allows you to deposit and withdraw funds, as desired, while earning interest on your balance. Standard savings accounts usually have lower interest rates than other types of savings accounts.
2. Club Accounts: Club accounts provide a designated savings account to save for special purposes like a vacation, holiday gifts, wedding, or beyond. In terms of features, a Club Account closely resembles the offerings of a standard savings account.
3. Share Certificates: Share Certificates are savings accounts where you agree to keep your money deposited for a specified period (also known as the term) in exchange for a fixed interest rate. The interest rates offered are usually higher than regular savings accounts and do not fluctuate during your term, making them a great option if you have funds you can set aside for a longer period.
4. Share Plus Savings: Share Plus accounts offer a unique mix of flexibility and higher tiered rates on earnings. Account holders can make up to three withdrawals per month and must maintain a minimum balance of $2,500 to earn dividends and avoid monthly fees.
5. Individual Retirement Accounts (IRAs): IRAs are long-term savings accounts specifically designed for retirement savings. They offer tax advantages and special benefits which are unique to the two primary types of accounts–Traditional IRAs and Roth IRAs. IRA contributions are subject to annual limits and can be penalized for early withdrawals.

These are just a few examples of the different types of savings accounts available. Each type serves a specific purpose, so it's important to consider your goals and needs when selecting your savings solution.