Guides / Saving
Savings accounts, CDs and insurance
Where you keep savings affects how much it earns and how safe it is. For cash you might need within a few years, safety and access come first.
The key ideas
- APY
- Annual percentage yield shows what you earn in a year including compounding. Use it to compare accounts.
- High-yield savings
- Often offered by online banks and credit unions. Rates can change at any time, so check them periodically.
- Certificates of deposit (CDs)
- CDs pay a fixed rate for a set term. Withdrawing early usually means a penalty, so match the term to when you need the money.
- Deposit insurance
- FDIC insurance (banks) and NCUA insurance (credit unions) cover up to $250,000 per depositor, per institution, per ownership category. Check that an institution is insured before you deposit.
- Fees and minimums
- Monthly fees and minimum balance rules can wipe out interest. Read the fee schedule.
Questions to ask yourself
- When will I need this money?
- Is this bank or credit union federally insured?
- Are there fees, minimums or limits on withdrawals?
Free help
- FDIC BankFind
- Check whether a bank is FDIC-insured at fdic.gov.
- NCUA Credit Union Locator
- Check whether a credit union is federally insured at ncua.gov.
This guide is general education for US households, based on how things typically work. Rules, rates and program details change and vary by lender and state. It is not individual financial, legal or tax advice, and it isn't an offer of credit. Pennies & More isn't paid by any lender or company mentioned here.