How can you find the best account for saving money for one year? It comes down to doing your research and understanding the different type of investment accounts that are out there. For short-term savings like this you should consider a 1-year CD or a money market account. Earning as much interest money as you can will help you to maximize your ability to save and grow your investment in 12 months.
CD Account
Opening an CD is a great way to help you save money. CD accounts provide you with a higher interest rate from traditional savings accounts and many other accounts. The interest rate for CD accounts fluctuates often but rates are typically locked in place on the account once you agree to the terms of the account. CD account rates are hovering around 1.15% with some banks, which can provide you with the highest interest rate out there for a short-term investment.
Money Market Account
A money market account is another great investment option if you are trying to find the best account for saving money for one year. A money market pays an interest rate that can be 5 times higher from the national average found with a traditional savings account. When you compare rates on money market accounts you need to look at the account fees and deposit requirements that can reduce your ability to earn a higher amount for your savings goals. The best rates are going to come from a high interest money market account, which may require a larger deposit amount to open the account.
Online Savings Account
If you want to have quick access to your cash, you need to consider an account that is easy to access. An online savings account is a great option. You will be able to earn a higher interest rate from what you see with a local bank’s savings account and you will also be able to have quick access to the funds if you do need to withdrawal it early.
Anyone that wants to find the best account for saving money for one year should consider these 3 accounts and compare rates to find an investment that will help you to grow your savings.
