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- onlinesupport@myaffinitybank.com
- M-F 9:00 - 4:00 ET
- Local: 678-742-9990
- Toll Free: 866-736-8194
- Auto Loan Payment
The Different Types of Savings Accounts
As you likely well know, beefing up your savings account is a big deal.
It can help you out of a myriad of different financial strains, and is a great resource when planning for future purchases. Today, we’ll be going over the different types of savings accounts that are commonly offered.
First, there’s something called a high-yield bank account. This is an interest bearing account, meaning your money will increase the longer it stays there. The catch though is that most times, you’ll likely have to put a large initial amount in to open it. And, there may be tougher restrictions on when you can pull money out. The payoff comes from its associated interest rate, which is most often higher than alternative options.
CDs & Money Market Accounts
Next, you have CD’s, or certificates of deposit. Instead of a larger initial deposit, you’ll actually have an agreed upon amount that goes in for an agreed upon time frame. These can also have high interest rates, but again, the restrictions on withdrawals are stringent. You won’t be able to touch the money until it matures past the above mentioned time.
Then you have your money market accounts. These usually come with a minimum monthly balance. Failing to meet this requirement can lead to further penalties, and possibly even account closure. You can withdraw money from them a bit easier than the previous options, however there will likely be a limit to how many times you can do so in a 30 day span.
