Financial institutions offer a few different types of savings accounts for people to choose from
. One really good one to think about would be a money market account. This is a savings account that earns interest at a little higher of an interest rate than a regular savings does but a little lower of a rate than a cd would earn.
What a great alternative this is to a certificate of deposit account since you earn a larger APR but you do not have to keep the money locked into it for a set period of time. Consequently, it does not earn as much of an APR on it as a certificate of deposit account because the money is not required to stay in for a period of time. The APR is usually larger than a normal savings account but littler than a certificate of deposit.
This type of account is good to have because you can put money into it and save it for special occasions. You could open this type of account and use it for a college savings for the kids. Put a certain amount into it weekly or monthly and let the interest grow on the account. The more money in the account, the more interest it will earn.
This is a smart kind of savings to use to put money away for when the least expected happens. Because you just never know what might happen next. If you already have money put away for something like this than it won't make the bad situation seem as bad.
This is a smart way to put money away for vacations. Make sure to place a set amount into it every month. Keep saving up your money until you have enough money to go on a vacation. This will allow for a vacation each year or maybe every two or three years depending on how much you save and where you would like to go.
There are other things each year that you will need money for also. Children's birthdays, spouses anniversary gift, or certain holidays. This way you are sure to have enough money to buy that special something for that special someone. You do not want to have to empty your bank account doing so though.
Also, another good idea would be that each year when you get your tax refund or an extra bonus at work, you would place it into the account. Keep this in the savings and just let it grow each year by depositing your yearly bonuses and tax refunds into this. Eventually you will have a nice amount saved up for a nice down payment on a house or to purchase a new car or whatever you have been wanting to do for a long time.
A money market account is a wonderful way to save money. If you do not have one than call your financial institution right now and get one. These are simple to open and do not require a lot of extra time. This will give you an extra way to save and be able to earn interest at the same time.