The best place to park your savings

Savings is essential to securing your financial future, and is especially important during times of economic hardship.

In addition to building an emergency fund, savings enable you to set aside money for your short-term goals, such as buying a new car, financing a trip or paying for a wedding. But where can you put your savings to ensure your money is safe and growing as much as possible? Read on to find out.

Explore your savings options here to see how much you could earn

The best place to park your savings

If you’re looking for somewhere to keep your savings, look no further than these options.

High Yield Savings Account

A High Yield Savings Account An excellent choice for storing your cash and if you want the ability to access it as needed. These accounts are easy to open, often offer low minimum balances and allow you Increase your savings By earning interest. Additionally, high-yield savings accounts are FDIC-insured up to $250,000 per account per bank, meaning Your money is safe If the bank fails.

High-yield accounts earn substantially more interest than others Regular savings account. The average rate on a regular savings account is currently around 0.39%. The Best High Yield Savings AccountHowever, offer rates of 4.5% or higher. That can really add up over time.

“High-yield savings accounts are great if you need a place to park emergency funds or save for a home down payment or other short-term goals,” says Vida Jatulis, CFP, CEPA, financial planner at MainStreet Financial Planning, Inc. “

If you already have a savings account, but it’s not a high yield one, now is Time to switch.

Compare high-yield savings account rates online now.

Certificate of Deposit (CD)

A CD An account where you deposit a fixed amount of money fixed period (usually one month to five years). Unlike savings accounts, whose rates vary based on the federal funds rate, CD rates are locked in when you open the account. So, if interest rates go down over the life of the CD, your earnings won’t go down.

However, you commit to keeping your money in the CD for the entire term. You will have to pay penalty if you withdraw the funds before the maturity date. If liquidity is a concern for you, you can get around it by creating one CD ladderWhere you buy CDs of different maturity lengths to ensure regular access to cash.

Check out current CD rates here to compare your options.

Bottom line

There are many places you can put your money to grow your savings and build the financial future you want.

Which one is best for you depends on your needs and goals. A high-yield savings account is a good option if you want to deposit money into — and withdraw money from — your savings whenever you want. If you want a fixed interest rate and can afford to lock up your money for a period of time, a CD can be an excellent choice.

By evaluating an account’s fees, interest rates, liquidity and other terms, you can make an informed decision about where to save your hard-earned money.