Savings Account or CD? Which Offers the Most?


Financial experts devote a lot of attention to recommending people save as much of their income as possible, but not as much care is spend telling consumers how best to save that money. When you get into the routine of setting aside a certain amount of your income each month, you’ll start to have a sizeable amount. Your first instinct is to deposit it into your checking account, but that’s unlikely to accrue much or any interest. Consider the best alternative then.

Advantages of the CD

Inquire about banking support and schedule a consultation with a financial advisor who can talk to you about CDs. CDs are a guaranteed-growth, risk-free way of saving your money for college tuition, retirement and any other big expense. The money is unavailable for a certain period – typically between one and three years – but that’s actually an advantage, as you won’t be tempted to spend it unnecessarily.

The Savings Account Option

The primary advantage of a savings account is that you can access the funds in the event of an emergency bill. However, it offers a significantly lower interest rate than a CD and it may prove tempting to access the cash now rather than spend it later.

As long as you save, you can’t go wrong – but a CD really offers the best way to earn additional interest on the money you set aside. Unlike the stock market, they’re risk-free.