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Types of Savings Account Rates - CD Rates - Search for CD Rates Today

Types of Savings Account Rates

There are many different savings accounts and associated savings account rates that you can earn interest income from. Before you invest in a savings account it is important that you have a full understanding of all types of savings accounts, how these savings accounts earn interest and how savings interest is credited to a savings account.

There are traditional brick and mortar savings accounts and online savings accounts. Both types of these savings accounts usually have variableĀ savings account rates which means the interest rate on the account can change at anytime.

Though some financial institutions offer promotional fixed rate savings accounts but since the account has a promotional rate it only stays fixed for a period of time. If you're looking for a fixed interest rate you should invest in certificates of deposit with usually have a fixed CD rate. Right now some of the highest savings account rates are comparable with the best CD rates on 1 year CDs.

Traditional savings accounts are good for investors who want to put month into an account on a regular basis, hence the term "savings account". There are bank accounts and credit union accounts that allow you to setup an ACH transfer into the account. This way you can save money like clock work when you get paid, you can have a percentage of your paycheck go into the account.

Savings accounts also have a maximum number of withdrawals per month or billing cycle. The maximum number is six withdrawals per month. This regulation is a government regulation. Since savings accounts are insured by the Federal Deposit Insurance Corporation for up to $250,000 per account the government wanted to make sure savings accounts are not used as a transaction account which isn't insured by the FDIC.

Besides the two types of savings accounts mentioned above there are also Individual Retirement Account (IRA) savings accounts which have IRA savings rates. There are also Health Savings Accounts (HSA), Educational Savings Accounts (ESA) and custodial savings accounts which are for minors.

Desiding on which type of account to have is up to you and your needs. Once you know what type of account you want to invest your money in you should search and compare the best savings account rates avaialble just like you would comparison shop for any other big ticket item.
Author: Robert Till
September 30th, 2011