Those planning to create a financially secure future for themselves and their family will want to open a savings account to stash money they don’t need immediately and earn interest on the savings. However, each type of savings account works differently. There’s no single best savings account for everyone because suitability depends on an individual’s needs and goals. Learning about a few standard options can help you choose one best suited to your financial goals.

Traditional or regular savings account
This is one of the most popular savings account options out there. You can open a regular savings account with a traditional bank or credit union with a low minimum deposit; however, you’re required to pay monthly maintenance fees. It’s an excellent option for those who aren’t concerned about getting the best interest rates but want easy access to their money whenever they want. These accounts are FDIC-insured for up to $250,000. Regular savings accounts allow you to make up to six withdrawals per month. Most people think traditional savings accounts are ideal for storing funds for emergencies or short-term goals.

Online savings accounts
Today, visiting a physical bank to deposit or withdraw money is quite bothersome for us. Fortunately, numerous financial institutions, including online-only and traditional banks, allow us to manage our wealth using our smartphones or laptops anywhere. Online savings accounts are secure, and some offer similar interest rates as regular savings accounts. Like traditional savings accounts, some online accounts allow you to make up to six monthly withdrawals before incurring a penalty. Online savings accounts are perfect for those accustomed to managing their money online and who desire the same liquidity and safety as in-person banking.

High-yield savings accounts
If you’re specifically looking for a savings account that pays you high interest on your money, consider opening a high-yield savings account. You can usually open this account with online banks, neobanks, or online credit unions. In addition to offering higher rates, this type of account typically charges lower fees, and some don’t charge monthly service fees. When exploring high-yield savings accounts, it’s crucial to choose one that’s FDIC- or NCUA-insured. This way, you’ll have peace of mind knowing that your money is safe even if the financial institute runs into trouble. Perhaps the only major drawback of high-yield savings accounts is that they have no physical branches.

Money market accounts
If you want to earn good returns on your savings and have more options for accessing your money, a money market account might be what you’re looking for. This type of savings account allows you to write checks or withdraw cash using a debit or ATM card. The interest rates are also good, with some financial institutions offering rates similar to that of high-yield savings accounts. However, note that banks typically require you to pay a higher minimum deposit to open a money market account. Deposits often range from a few hundred to a few thousand dollars, and you may be charged fees if the balance dips below the minimum amount.

Certificates of deposit
Commonly referred to as CDs, certificates of deposit can be an excellent way of building wealth if you don’t need to use your savings immediately. When you buy a CD, you agree to leave your money in the account for a period, typically ranging from three months to five years. In the meantime, your CD keeps building interest, and when it matures, you can withdraw your savings. The longer the term you choose while buying CDs, the better the interest rate you’ll be offered. However, if you decide to withdraw money from a CD before it matures, you’ll likely incur a penalty. Both traditional and online banks offer CDs that can be FDIC-insured.

Student savings account
This type of savings account is exclusively for students. The most significant advantage of student savings accounts is that they typically have lower monthly balance requirements. They also come with a few extra perks that help reduce financial stress in a student’s life while offering interest. However, finding a savings account for students may not be easy. Only a few banks and credit unions offer this type of account. Nevertheless, a detailed online search can help find an attractive student savings account.

Cash management account
Cash management accounts are unlike any other savings account on this list. Instead of banks, these accounts are typically offered by online brokerages and robo-advisor platforms. These providers partner with real banks, which means your money can be safe through FDIC insurance. Cash management accounts hold the money you plan to eventually invest in a taxable brokerage account or a retirement account. These accounts function as hybrid checking/savings accounts and allow you to make an unlimited number of transactions.