There are many ways to save and invest your money so how do you choose which way is best for you? Doing research on the different ways to save money would be the first step, so listed below are two ways anyone can save their money.
The Federal Deposit Insurance Corporation (FDIC) insures saving account and certificates of deposit, but not money market accounts. Yet a money market account has some of the same traits as a savings account and a CD. The interest rates tend to be higher than a savings account yet lower than CDs.
The money in a money market account can be taken out at anytime like a savings account. Checks can be written on the money in a money market account but the amount of money written, how many checks, and minimum account balances are all monitored, thus it does not allow complete freedom with your money. You can typically open a money market account at any place that also allows saving accounts and CDs.
There are different kinds of money market accounts, so research is necessary in order to find which kind you would like to place your money in. Another kind of savings are Certificates of deposit or CDs. As stated above CDs are FDIC insured but usually earn a higher interest rate than saving accounts.
The reason CDs earn a highere interest rate is because the money is not as easily accessible. There is a waiting period of minimally usually six months before the funds placed into a CD can be withdrawn. By pulling money out of a CD before the specified wait time is up you will be charged fees. But if you have extra money that you think you will not be using for a while a CD is a great way to earn some extra interest.