Where to Save

Bank and credit union savings accounts are simple and convenient ways to save. You earn interest on your balance in these basic accounts, typically at a low but guaranteed rate.

Once you get started, you might also open other savings accounts where you can earn a slightly higher return but where your principal is still safe:

• Money market accounts tend to pay interest at a somewhat higher rate than basic savings accounts, but they may charge fees if your balance falls below a set minimum.
• Certificates of deposit (CDs) are term deposits with maturities from six months to five years that pay interest at rates at least as high, and sometimes higher, than money market accounts.
• US Treasury bills (T-bills), which you buy online with an easy-to-open TreasuryDirect account (www.treasurydirect.gov Links to an external site.), pay a fixed rate of interest that’s set when you buy. They’re available with terms of 4,13, 26, or 52 weeks.

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