10 Types Of Savings Accounts: Where To Save Your Money

Choosing the right savings account is key to saving for your goals, because not all savings accounts are the same. Here’s a closer look at eight savings account options to help you determine which one might be the best fit for you.

1. Traditional savings account

How it works: The most common savings account is a traditional savings account at a bank or credit union. You can add money to one of these savings account at any time. Annual percentage yields (APYs) on regular savings accounts are variable and can change.

Rates: Interest rates on traditional savings accounts are generally low compared with other savings products. The national average savings account yield is  0.6 annual percentage yield (APY), according to Bankrate’s survey of institutions as of the week of June 28, 2025. Some big banks pay even less interest — 0.01 percent for a standard savings account at Chase, for example. 

Fees: Some banks may charge monthly maintenance fees for traditional savings accounts, while others don’t. If they do charge a fee, they often give ways to waive it, such as having a certain minimum balance in the account. Other possible fees with any savings account — including #2 and #3 on this list — include charges for excessive transactions, account closure, receiving paper statements, dormancy fees and more. Check your bank’s fee schedule for details.

Accessibility: Basic savings accounts typically offer easy access to cash, especially if your account is with the same bank as your checking account. You may be limited to six withdrawals per statement cycle, not including ATM withdrawals or taking out cash inside a branch (though this rule varies by the policies of individual banks). 

Insurance: If the bank is a member of the Federal Deposit Insurance Corp. (FDIC) or the credit union is a member of the National Credit Union Administration (NCUA), your savings are insured up to $250,000 per depositor, per insured institution, per ownership category.

2. High-yield savings account

How it works: High-yield savings accounts are similar to traditional savings accounts with one big difference: The interest rates are much higher, allowing you to grow your savings faster without compromising safety or liquidity. These accounts are one of the best places to keep your emergency fund. 

Rates: High-yield savings accounts offer much better rates than traditional ones. As of 2025, the highest interest rates on savings accounts are hovering around 4%, whereas many traditional savings accounts only offer 0.01%. You can often find high-yield savings accounts online banks, because they don’t have the expenses of keeping brick-and-mortar branches, they pass those savings to their customers in the form of high rates. 

Fees: Many high-yield savings accounts do not have monthly fees, but some do. And as with a traditional saving account, you might still be limited to six withdrawals or electronic transfers per statement cycle, but check with the bank. Some banks have loosened those rules. 

Accessibility: Accessibility to your funds can be different, and sometimes worse, compared to traditional accounts. For example, many high-yield savings accounts (especially those offered by online banks) don’t allow cash deposits or only allow cash deposits for a fee. You may also be limited to moving funds only via wire or electronic transfers, as ATM withdrawals may not be available). But funds accessibility varies by bank. And you may find the trade-off of accessibility is worth it for the yield. 

Insurance: At a member-FDIC bank or NCUA credit union, your money is safe just like it is in a regular savings account, as long you’re within the limits and guidelines.

3. Student savings account

How it works: Another savings account option is one specifically for students. Student savings accounts have features specifically for young people with modest financial means. For example, student accounts often have no monthly fees as long as you’re under a certain age. These accounts can help students save and manage money, but they’re not always the best option for high yields or extra budgeting or savings features. 

Another downside is that options are somewhat limited. Many banks and credit unions offer student checking accounts, but student savings accounts are less common.

Rates: Rates on student savings accounts tend to be low to middling. You can find better rates with regular high-yield savings accounts though if you’re under 18, you might have to open a joint checking account.

Fees: You can find student savings accounts with no minimum opening deposits and no monthly service fees. 

Accessibility: Like traditional and high-yield savings accounts, student savings accounts may also set maximum withdrawal limits. Check with the bank or credit union to understand its particular rules. 

Insurance: Student savings accounts that are housed in a member-FDIC bank or NCUA credit union are safe up to the insurance limits and within guidelines.

4. CDs

How it Works: A certificate of deposit, or CD, is a type of savings account where you agree to leave your money with the bank for a set period in exchange for a fixed interest rate. CD terms range anywhere from one month to five years or longer. The downside to CDs is that you usually can’t withdraw funds before the term ends without paying a penalty. It’s not the best place to stash your emergency funds or cash you might need to access in the short term.

Rates: CDs typically pay a higher yield than traditional savings accounts because of the agreement to lock up your money. Rates for most types of CDs are fixed, but they do vary widely across CD terms. As with high-yield savings accounts, online banks tend to offer the highest yields on CDs.

Fees: CDs don’t typically charge monthly service fees like other savings accounts on this list, but they will charge an early withdrawal penalty. This penalty is likely some months’ worth of interest earned, but depending on your timing, the penalty could potentially eat into your principal.

Accessibility: CDs are known as “illiquid” assets precisely because you agree to lock up your money in one for the length of a CD term. Should you need to withdraw your money before the CD has matured, you’ll likely incur an early withdrawal penalty.

Insurance: Funds held in CDs at FDIC-banks and NCUA credit unions are insured within the same limits and guidelines as other savings accounts.

5. Money market accounts

How it works: Money market accounts are similar to a savings account, though they often offer check-writing capabilities or a debit card for easier access to funds. Market money accounts tend to require higher minimum balances than other types of savings accounts, so consider the pros and cons of money market accounts before making a decision.

Rates: Many of the top money market accounts are offering APYs of 4 percent or higher. Money market accounts typically pay less than CDs. Rates on money market accounts are also variable and can change at any time. 

Fees: Whether the money market account has a monthly maintenance fee depends on the issuing bank.

Accessibility: Unlike most savings accounts, money market accounts often offer access to your funds via a debit card or paper check. Note though that some banks may impose limits on monthly withdrawals, just like with a savings account. 

Insurance: Like most bank savings products, your money market account is insured by the FDIC and NCUA with the same limits: up to $250,000, per depositor, per insured bank, for each account ownership category.

6. Cash management account

How it Works: Cash management accounts (CMA) are a little different from other savings vehicles. They are not available at banks and credit unions but are offered by non-bank financial institutions such as brokerages and robo-advisor platforms. They combine many features of checking, savings, and brokerage accounts.

Rates: CMAs do pay interest and some offer competitive yields, though rates may be lower than what you can get with a high-yield savings accounts. 

Fees: Many CMAs do not charge monthly maintenance fees, though you’ll have to do your due diligence with the one you open.

Accessibility: Because this type of account is designed for everyday transactions (paying bills, writing checks, etc.), a cash management account is unlikely to have withdrawal limits. 

Insurance: Many CMAs place your funds with partner banks, which is good for big depositors. By spreading your money around, your FDIC coverage can be expanded beyond the $250,000 limit. Check with the CMA provider to see what your insurance coverage is like. 

7. Health Savings Account

How it Works: A health savings account (HSA) is designed for a singular purpose: to pay for medical expenses. You must be enrolled in a high-deductible health plan (HDHP) to open an HSA, and you and/or your employer can contribute to the account. A major benefit to this type of account is that deposits are tax-deductible, and growth is tax-exempt.

There are contribution limits to this tax-advantaged account but unspent account funds roll over year after year for future health care expenses. Since an HSA can only be used to pay for health care and you must have an HDHP to qualify, it is not a good savings account for everyone. 

Rates: The APY on HSAs is usually lower than high-yield savings accounts but one feature of HSAs is that you can also invest your funds in stocks, bonds, ETFs and other securities if your account allows it. If you elect to invest your money, the returns will follow that of your chosen investments.

Fees: Some HSAs do not charge a monthly fee, while others do (though some institutions waive them if the HSA is offered through an employer.) 

Accessibility: You can withdraw funds from your HSA at any time to pay for qualified medical expenses. If you withdraw funds for other purposes, that money is subject to a 20 percent penalty. (This rule does not apply if you are disabled or over age 65.)

Insurance: Not all HSA accounts are FDIC insured. Check with your HSA’s provider to understand the specific rules that would pertain to your account.

8. IRA and Roth IRA

How it Works: There are some savings vehicles that are better for long-term goals, like retirement. Individual retirement accounts (also called individual retirement arrangements), including Roth IRAs and traditional IRAs, are tax-advantaged options for saving for retirement. There are contribution limits for each account. For 2025, for example, you can contribute up to $7,000 to these accounts in 2025, or $8,000 if you are age 50 or older.

The difference between a Roth IRA and a traditional IRA is in the taxation. A Roth IRA allows you to contribute after-tax dollars, and funds can be withdrawn tax-free after you turn 59½ years old. A traditional IRA allows you to contribute pre-tax dollars, which are taxed as income when you withdraw them after you turn 59½.

Rates: You can invest IRA funds in stocks, bonds, IRA CDs and other securities, so the return rate depends on the investment mix you choose.

Fees: The institution that holds your IRA (called the custodian) may charge an administrative or custodial fee for keeping track of your account. You may also be charged transaction fees for buying and selling securities, and mutual funds may also have management fees. 

Accessibility: Plan to keep all contributions to your IRA or Roth in the account until you retire, or you turn 59½. If you withdraw funds from your traditional IRA early, they are subject to both income tax and a 10% penalty. However, you can withdraw your contributions from a Roth IRA at any time, but not the earnings.

Insurance: Certain individual retirement accounts held at banks do qualify for FDIC insurance, depending on how they’re administered. Check with your plan to understand how your funds are protected. 

What to consider when choosing a savings account

The type of savings account you choose should help you achieve your savings goals. As you explore your savings options, think about your needs. Do you value security and liquidity? Or do you want the highest return, even if you have to sacrifice access to your funds? Or are you looking to use your contributions to optimize your taxes? 

Be honest with yourself about the amount you can afford to put in savings. Start by building an emergency fund that you can access easily. Then, work toward other savings goals with the account that best suits your needs. 

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