Which Savings Account Will Earn You the Most Money? (2024)

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Get the best return for your money by knowing what you’re getting with each type of savings account and which is the best for you.

Which Savings Account Will Earn You the Most Money? (10)

Key Takeaways

  • Traditional savings accounts are great for jump-starting your savings plans or building your emergency fund.
  • If you already have a large amount of money to move over, like for a down payment on a house, that would be a good opportunity to open a money market account.
  • With share certificates you have a much higher minimum deposit requirement, and you won’t have the quick access to your funds that you would have with a regular savings or money market account.
  • If you’re just starting out with building your savings account and want to grow your money fast, a high-yield savings account is a better starting option than a money market account.

You work hard for your money, but are you putting your money to work for you? Whether you’re building your emergency fund, saving for a big purchase, or getting money together to invest, using the right type of insured savings account can help grow your hard-earned money.

Here we’ll show you what to look for in a savings account as well as the differences between a regular savings account, money market accounts and share certificates.

Why You Need a Savings Account

Opening a savings account will help you put money away toward financial goals. Unlike checking accounts, savings accounts typically offer higher interest rates so you can grow your savings over time.

A savings account serves as a secure repository for your money, allowing you to earn interest on your balance while keeping it easily accessible. Whether it's for short-term goals or long-term financial stability, a savings account provides a safe and liquid space for your funds. A savings account is also a great place for your emergency fund, about $1,000 to $2,000 that is meant only for covering unexpected expenses.

What is the Benefit of Saving with a Credit Union vs. a Bank?

Depositing your money with a credit union is similar to depositing with a bank with one big exception – credit unions typically offer better interest rates than banks. Since credit unions are owned by their members and banks must create a profit for their investors, credit unions can pass those savings back to their members in the form of lower fees and better rates. You’ll earn more for your money going the credit union route.

Much like with a bank, your savings with a credit union are protected. Credit unions are insured by the National Credit Union Administration (NCUA) for up to $250,000 per depositor.

Which Savings Account Will Earn You the Most Money? (11)

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4 Types of Savings Accounts: Which Savings Account Will Earn You the Most Money?

1 Traditional Savings / “Share” Savings

A basic savings account allows you to deposit and withdraw money at any time. You earn interest on a traditional savings account (commonly called Share Savings accounts with credit unions) only if you keep at least the minimum required amount in the account. If your balance is lower, some banks don’t pay interest and others may charge a fee for holding your money.

Keeping your money in a traditional savings account ensures you’ll earn more than if your money was in a checking account or no account at all, but interest rates on a regular savings account are likely to be the lowest the bank offers.

Pro Tip: Traditional savings accounts are great for jump-starting your savings plans or building your emergency fund.

Which Savings Account Will Earn You the Most Money? (12)

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2 High-Yield Savings Accounts

How do high-yield savings accounts work? A high-yield savings account is designed to do exactly what its name suggests—generate higher interest rates compared to traditional savings accounts.

One of the biggest reasons you might choose a high-yield savings account is for its competitive annual percentage yield (APY). This means that your money can grow at a faster pace compared to a regular savings account. Plus, the interest earned in a high-yield savings account is often compounded daily or monthly, helping to boost your savings even more.

3 Money Market Accounts

A money market account (MMA) is a savings account that typically pays higher interest rates than regular savings accounts. MMAs usually offer tiered rates, meaning you can earn an even higher rate on large balances or on part of your balance over a certain level.

You’ll likely see a higher minimum required deposit than with a regular savings account. So, if you already have a large amount of money to move over, like for a down payment on a house, that would be a good opportunity to open a money market account. If your account falls below the minimum requirement, you might see some substantial service fees, forfeit your interest, or both.

4 Share Certificates

A share certificate – similar to a certificate of deposit (CD) at a traditional bank - are high-end savings accounts. These will generally pay higher interest rates but come with different regulations. You’ll have a much higher minimum deposit requirement, and you won’t have the quick access to your funds that you would have with a regular savings or money market account.

When you open a share certificate you agree to commit your money for a specific term or period of time. If you withdraw money from the share certificate before it matures when the term ends, you’ll lose some or all the interest you would’ve earned.

Terms can range from three months to five years. The longer the term, the slightly higher the interest rate you may earn. When the share deposit matures, you can roll over the money into another share certificate, transfer your money to a different account or have the credit union send you a check.

Which Savings Account Will Earn You the Most Money? (13)

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High-Yield Savings vs Money Market Accounts

Another savings option is a high-yield savings account, but what’s the difference between high-yield savings vs money market accounts? Both offer attractive features, so let's understand the nuances between them.

High-yield savings accounts come with a competitive annual percentage yield (APY). This means that your money can grow at a faster pace compared to the traditional savings account we talked about earlier. Plus, the interest earned in a high-yield savings account is often compounded daily or monthly, providing a compounded boost to your savings.

Note that high-yield savings accounts are not immune to market fluctuations, and their interest rates can vary over time.

Money market accounts typically provide higher interest rates compared to standard savings accounts, but they may fall slightly short of the rates offered by some high-yield savings accounts. You’ll still see a higher minimum required deposit than with a high-yield savings account.

So how do you choose between high-yield savings vs money market accounts? Think of it this way: A money market account may be a great option if you already have a large savings established and you want to grow a bigger return for those earnings. But if you’re just starting out with building your savings account and want to grow your money fast, a high-yield savings account is a better starting option.

Which Savings Account Will Earn You the Most Money? (14)

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How to Open a Savings Account at OneAZ Credit Union

You can open a savings account online, over the phone, or in person at a branch. You will need your Social Security number and a form of identification, like a driver’s license or passport. You will also need to make an initial minimum deposit.

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Savings Account FAQs

The savings account that will earn you the most money depends on factors like interest rates, fees, and your financial goals. High-yield savings accounts and share certificates often offer the most competitive rates.

Basic savings accounts may offer lower interest rates compared to high-yield savings accounts or money market accounts. Always compare rates and terms when choosing a savings account.

Interest is essentially the cost of using money. In a savings account, you are paid interest by your financial institution for keeping money in the account. The interest rate is a percentage of the account balance, and it is typically compounded either daily, monthly, or annually.

No, opening a savings account does not impact your credit score. Unlike credit cards or loans, savings accounts are not a form of credit, so they do not appear on your credit report.

Keeping your money in a savings account helps your funds grow over time. Maximize your savings by opening a regular savings account with a low minimum deposit, a money market account with higher interest, or a share certificate that locks your funds for a specific time but yields the highest return – whichever fits your needs.

Ready to watch your money grow? Open a OneAZ savings account today!

Which Savings Account Will Earn You the Most Money? (15)

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Table of Contents

  • Why You Need a Savings Account
  • What is the Benefit of Saving with a Credit Union vs. a Bank?
  • 4 Types of Savings Accounts: Which Savings Account Will Earn You the Most Money?
  • High-Yield Savings vs Money Market Accounts
  • How to Open a Savings Account at OneAZ Credit Union
  • Savings Calculator
  • Savings Account FAQs
  • View related articles

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APR = Annual Percentage Rate

Which Savings Account Will Earn You the Most Money? (2024)

FAQs

Which Savings Account Will Earn You the Most Money? ›

A money market account (MMA) is a savings account that typically pays higher interest rates than regular savings accounts. MMAs usually offer tiered rates, meaning you can earn an even higher rate on large balances or on part of your balance over a certain level.

What type of savings account will earn you the most money? ›

Certificates of deposit, or CDs

Rates and minimum deposit: CDs tend to have the highest interest rates of the three types of savings accounts. They typically require around $1,000 to open, but some banks have CDs with no minimum opening deposit requirements.

What savings accounts make the most money? ›

Best High-Yield Online Savings Accounts of June 2024
  • Laurel Road High Yield Savings®: 5.15% APY.
  • Bask Interest Savings Account: 5.10% APY.
  • EverBank Performance℠ Savings: 5.05% APY.
  • LendingClub High-Yield Savings Account: 5.00% APY.
  • Varo Savings Account: 3.00% to 5.00% APY.
  • Quontic Bank High Yield Savings: 4.50% APY.

Which savings account will earn you the most money in Quizlet? ›

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

Which savings account pays the best interest? ›

In this guide
  • Monument Bank – 5.17% for six months.
  • Hodge Bank – 5.16% for one year.
  • Nationwide – 5.5% for 18 months.
  • SmartSave – 5.06% for two years.
  • Vanquis Bank – 4.8% for three years.

Where can I get 7% interest on my money? ›

Why Trust Us? As of June 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Which savings account is best? ›

Institutions such as HDFC Bank, ICICI Bank, and State Bank of India (SBI) are known for their attractive interest rates and substantial branch networks. Kotak Mahindra Bank is known for its digital financial services, whereas Axis Bank provides flexible savings alternatives.

What is the best savings account to open? ›

Best savings accounts of June 2024: Compare rates, fees, and more
  • SoFi.
  • UFB Direct.
  • LendingClub.
  • Varo.
  • Laurel Road.
  • Credit Karma Money Save.
  • Newtek Bank.
  • TAB Bank.

What bank account makes your money grow? ›

High-yield savings accounts reward you with a higher interest rate than traditional savings accounts, making your money grow faster as it sits in your account. The interest rate that these accounts offer is known as the annual percentage yield, or APY. The higher your APY, the faster your money grows.

What account should I put my savings in? ›

The best places to save money include high-yield savings accounts, high-yield checking accounts, CDs, money market accounts, treasury bills and savings bonds. These products offer varying degrees of security, returns and liquidity.

What is the best type of account to keep your money in? ›

High-yield savings accounts—typically found at online banks, neobanks and online credit unions—are savings accounts that offer a higher APY compared to regular savings accounts. This is one of the best types of savings accounts to maximize your money's growth.

Which savings account earns the most money compound interest? ›

Certificate of deposit (CD) accounts

CDs generally offer higher interest rates than savings accounts and typically compound daily or monthly. The only catch is that you usually cannot withdraw the money before the specified period ends; otherwise, you may face early withdrawal penalties.

What is the most you should have in savings? ›

Rule of thumb? Aim to have three to six months' worth of expenses set aside. To figure out how much you should have saved for emergencies, simply multiply the amount of money you spend each month on expenses by either three or six months to get your target goal amount.

Which savings account will earn you the most interest? ›

CDs are best for individuals looking for a guaranteed rate of return that's typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.

What is the best thing to do with a lump sum of money? ›

Put it in a bank account - If you think you'll be spending money, then you could just keep it in your regular bank account. Invest it - By investing your money you could allow it to potentially grow. Most investments, such as shares and funds, offer potential returns on your money over a longer term.

Which bank gives the best interest on savings? ›

Best high-interest savings accounts by base rate
  • Freedom Saver (Australian Unity) – 5.20%. ...
  • ANZ Save (ANZ Plus) – 4.90%. ...
  • Simple Saver Account (Bank of Queensland) – 4.85%. ...
  • MoneyMAX Account (Unity Bank) – 4.75%.
  • Online Saver Account (Orange Credit Union) – 4.75%. ...
  • Savings Account (Macquarie) – 4.75%.

What is the best account to put money in to make money? ›

Instead, you may be better off looking into an investment account that lets you buy stocks, bonds, mutual funds, or exchange-traded funds (ETFs). While they're riskier than throwing your money into savings, they typically have much higher returns.

What is a high earning savings account? ›

High-yield savings accounts reward you with a higher interest rate than traditional savings accounts, making your money grow faster as it sits in your account. The interest rate that these accounts offer is known as the annual percentage yield, or APY. The higher your APY, the faster your money grows.

Where can I get 12% interest on my money? ›

Where can I find a 12% interest savings account?
Bank nameAccount nameAPY
Khan Bank365-day, 18-month and 24-month Ordinary Term Savings Account12.3% to 12.8%
Khan Bank12-month, 18-month and 24-month Online Term Deposit Account12.4% to 12.9%
YieldN/AUp to 12%
Crypto.comCrypto.com EarnUp to 14.5%
6 more rows
Jun 1, 2023

Which type of interest will earn you the most money? ›

Compound interest causes the principal to grow exponentially because interest is calculated on the accumulated interest over time as well as on your original principal. It will make your money grow faster in the case of invested assets.

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