Types of Savings Products
Choose a savings product that’s right for your needs, whether they involve immediate cash access or long-term growth. Here is an overview of savings account basics, including important questions to ask yourself as you look for the right account for you.
What is the right savings product for me?
Before choosing a savings product, ask yourself:
- What am I saving this money for?
- How long can I leave this money in an account?
- When will I need the cash?
Different savings products carry different advantages, timelines and interest rates. Look for one that will meet your needs.
Savings accounts are designed to keep your money safe and help it grow. A savings account is a good place to keep money that you might need immediate access to (as opposed to long-term investments, such as CDs and retirement accounts).
Savings account benefits
- Safety. The FDIC insures deposit accounts at banks for up to $250,000. (FDIC coverage levels for individual accounts are expected to return to the $100,000 limit on January 1, 2014.)
- Easy access. You can make deposits into your account and withdraw money when you need it.
- Earns interest. The bank pays you interest on the money you have in a savings account.
When you have money in a bank savings account, your money earns interest. Savings accounts tend to pay higher rates of interest than interest-bearing checking accounts, but shop around and take advantage of every sound opportunity to save and earn interest.
Hint: All savings accounts are not created equal. Be aware of interest rates and shop around for the best rate. Know your interest rate, and as time goes by, keeping an eye out for better rates.
This site is for education purposes. The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the availability or suitability of any Capital One product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional.