Different Types of Savings Accounts to Grow Your Wealth

If you’re looking to put money aside for future needs and watch it grow, a savings account can be a great option. However, not all savings accounts are created equal. There are actually several different types to choose from, and the best choice for you will depend on your goals, how you want to access your money, and how soon you’ll need it.

If you’re looking for easy, in-person access to your savings, for example, you might like a traditional savings account. If getting a high return is your priority, a high-yield savings account, certificate of deposit (CD), or online bank account may be a better option. There are also speciality accounts for longer-term savings goals like retirement.

Here’s a closer look at different types of savings accounts and how to choose the best one (or ones) for your needs.

7 Common Types of Savings Accounts

To help you reach your specific financial goals, here’s an overview of some of the most common savings account types and how their features compare.

1. Traditional Savings Accounts

Many people start their savings journey by opening a traditional savings account at the same bank where they have a checking account. If your bank is insured by the Federal Deposit Insurance Corporation (FDIC), then your deposits are insured for up to $250,000 per depositor, per ownership category, per insured institution. The National Credit Union Administration (NCUA) provides similar insurance for credit unions.

You can typically open a basic savings account with a small minimum deposit. And, while the interest rates on these accounts tend to be low compared to other savings options, they offer fairly easy access to your funds. Just keep in mind that some institutions limit withdrawals on savings accounts to six per month, and will charge a fee if you exceed the limit. Some banks may charge other fees for basic savings accounts, such as monthly maintenance and inactivity fees.

2. Online Savings Accounts

Brick–and–mortar financial institutions aren’t the only place where you can shop for a savings account. If you’re comfortable doing your banking online or from your mobile device, you might consider an online bank for your savings account.

Because online-only financial institutions tend to have lower overhead costs than traditional banks, they often pass that savings on to customers in the form of higher interest rates and lower, or no, fees.

While you can’t meet with a bank representative face-to-face, these accounts often come with well-designed and user-friendly websites and mobile apps, seamless automated savings tools, along with customer service representatives available via online chat and by phone.

Like basic savings accounts, online savings accounts may have restrictions on the number of transactions you can make per month without incurring a penalty fee.

If you choose an online savings account from an institution with FDIC or NCUA insurance, then your funds will be protected (up to insured limits).

3. High-Yield Savings Accounts (HYSAs)

Primarily offered by online banks and credit unions, high-yield savings accounts tend to come with significantly higher interest rates than traditional savings accounts and often lower fees. In addition, some don’t charge fees or require minimum balances. These accounts are typically insured by the FDIC or NCUA.

While many online banks and credit unions allow unlimited withdrawals and transfers from savings accounts, some may limit withdrawals to a set number per month, and going over the limit may trigger a fee.

4. Money Market Accounts (MMAs)

A money market account (MMA) is a type of savings account that also offers some of the features of a checking account. Like a savings account, MMAs pay interest on your balance (often at a higher rate than a traditional savings account). Like a checking account, MMAs offer checking-writing privileges and/or debit cards, making it easy to access your funds.

On the downside, money market accounts generally require a much larger initial deposit than a basic savings account. And, you could be charged fees if the balance goes below a minimum amount.

Due to the potentially higher interest rates and check-writing/debit access, money market accounts can be a good choice for emergency funds if you’ve already saved enough to meet the initial deposit.

Keep in mind that there is a distinction between money market accounts vs. money market funds. The latter is a type of investment account and not insured by the FDIC or NCUA.

5. Certificates of Deposit (CDs)

Certificates of deposit, or CDs, can be a good savings tool if you don’t need quick access to your money. This type of savings account comes with a specific term — often between three months and five years — during which you need to keep your money in the account.

In return for leaving your money untouched for that time period, CDs generally offer higher returns than standard savings accounts. Traditionally, longer-term CDs pay higher interest rates, but market conditions can cause short-term CDs to offer equal or higher yields, so it’s worth shopping around and comparing rates and terms.

While savings and money market accounts pay variable interest rates (meaning your rate can change after you’ve opened the account), CDs typically pay fixed rates, so your rate is likely to be locked in once you’ve deposited the cash. However, if you pull your cash before the maturity date, you will usually pay a penalty. (There are some no-penalty CDs, but interest rates tend to be lower.)

6. Cash Management Accounts (CMAs)

A cash management account (CMA) is an interest-bearing account that is usually offered by a brokerage or investment firm. These accounts typically combine the features of a savings account and checking account and can be used to hold uninvested funds and make payments. Though they are not held by banks, they may be insured by the FDIC via a partner bank. Not all are, so be sure to check if you are thinking of opening one.

CMAs may offer higher interest rates than traditional savings accounts, along with check-writing privileges and a debit card. CMAs also typically provide easy transfers to brokerage accounts, where you can invest your funds. Keep in mind, however, that interest rates might not be as high as what you could earn in a high-yield savings account.

7. Speciality Savings Accounts

The types of savings accounts listed above can be great places to save money for short-term goals like saving for a large purchase. But if you’re looking to save for a more specific or longer-term goal, such as retirement or a child’s future education, you may want to open a more specialized account.

Specialty savings accounts are designed to serve a specific financial goal. They can earn interest to help you grow your money, just like other savings accounts. Some of these accounts, however, are investment vehicles, which means they can potentially yield higher returns over the long term, but also involve risk of loss.

Among the most common specialty accounts are 529 college savings plans, 401(k)s and individual retirement accounts (IRAs), health savings accounts (HSAs), and custodial accounts for a child (which are savings accounts set up and administered by an adult for a minor).

Opening a specialty savings account can make sense if you have a singular purpose for saving money. Keep in mind, however, that there may be restrictions on when and how you can withdraw those funds later. Some specialty accounts, such as IRAs, 529s, and HSAs, have strict tax rules for making withdrawals.

How to Choose the Right Savings Account

When choosing a savings account, you generally want to match your timeline and access needs to the highest available annual percentage yield (APY) while avoiding monthly fees. As you compare your options, here some key factors to keep in mind:

•   APY: Online and high-yield savings accounts typically offer significantly larger interest earnings than traditional savings accounts.

•   Fees: If possible, you’ll want to avoid accounts with monthly maintenance charges, low-balance fees, or other charges that can eat into your earnings.

•   Safety: Ensure your deposit is legally protected by the FDIC or NCUA.

•   Convenience: Evaluate mobile app features, ATM networks, and (if you want in-person service) access to local branches.

It’s also important to consider your goals. For example, a HYSA can be ideal for emergency funds and short-term goals where you need liquidity combined with strong growth. A CD, on the other hand, may work well when you have a fixed sum of money you won’t need for a set term and want to lock in a guaranteed rate. If you’re looking for above-average interest alongside checking-like features, such as limited check-writing or a debit card, you might open an MMA.

To see how much your savings could grow over time based on different interest rates, you can use an APY calculator to help you compare your options.

The Takeaway

There are many different types of savings accounts, and the best option for you will likely depend on how and when you want to access your money.

You might like a traditional savings account if you want to bank in person. For better interest rates and lower fees, you might prefer an online high-yield savings account or, if you won’t need the money for a while, a CD.

For more specific savings goals, such as preparing for retirement, covering health expenses, or saving for your child’s education, you may want to open a specialty savings account in addition to a more liquid savings vehicle.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.10% APY on SoFi Checking and Savings.

FAQ

What are the main types of savings accounts?

There are several common savings account types, each designed for different financial goals. They include:

•   Traditional savings accounts: Offer easy, in-person access at local branches.

•   Online savings accounts: Often feature lower fees and higher interest rates.

•   High-yield savings accounts (HYSAs): Focus on maximizing interest earnings.

•   Money market accounts (MMAs): Combine savings features with checking-like access.

•   Certificates of deposit (CDs): Allow you to lock in rates for fixed terms.

•   Cash management accounts (CMAs): Combine features of checking and savings accounts, often offered by brokerages.

•   Specialty accounts: Help save for specific long-term goals like retirement or education.

Which type of savings account has the highest interest rate?

High-yield savings accounts (HYSAs) typically offer significantly higher interest rates than traditional savings accounts. Online banks and credit unions primarily offer these accounts. Certificates of deposit (CDs) can also offer competitive returns, especially when market conditions are favorable, because they allow you to lock in a fixed rate for a set term. Money market accounts generally also provide better growth potential for your cash than basic savings accounts.

Is it better to keep money in a checking or savings account?

It depends on your goal. Checking accounts are designed for everyday spending and frequent transactions, providing easy access to your money via debit cards and checks. Savings accounts are intended for setting aside money for future needs. While they may have limits on the number of monthly transactions, they generally pay interest, helping your money grow over time. Ideally, you’ll want to maintain a checking account for daily expenses and use a savings account to store your emergency fund or money earmarked for short-term goals.

Are online and high-yield savings accounts safe?

Yes, online and high-yield savings accounts are generally safe, provided you choose an institution insured by the Federal Deposit Insurance Corporation (FDIC) for banks or the National Credit Union Administration (NCUA) for credit unions. If your financial institution is covered by these agencies, your deposits are protected up to $250,000 per depositor, per ownership category, per insured institution. Always verify the insurance status of any bank or credit union before opening an account to ensure your funds are protected.

Can you lose money in a savings account?

When you keep money in an FDIC- or NCUA-insured savings account, your funds are protected up to $250,000 per depositor, per institution, and per ownership category. You will not lose principal from bank failures within these limits, but you can still lose money in other ways.

Monthly maintenance or inactivity fees can directly reduce your balance. In addition, withdrawing funds from a certificate of deposit (CD) early triggers penalties that can eat into your principal, and inflation can erode your money’s purchasing power. Also keep in mind that investment-based savings vehicles carry the risk of market loss.

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^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet. We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/. *Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
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