Savings & Banking

Names and abbreviations on this page

CD — Certificate of deposit. A deposit product typically held for an agreed term, with rules on early withdrawal.

Compare what the money can earn without overlooking access, fees or changing rates.

1 — Compare the APY

Use Annual Percentage Yield (APY) rather than the advertised interest rate alone when comparing deposit accounts. Check whether the APY is variable, promotional or tied to a minimum balance.

2 — Check access and account conditions

Compare regular savings, higher-yield savings, money-market deposit accounts and CDs. Look for monthly fees, minimum balances, transfer or withdrawal conditions, CD maturity dates and early-withdrawal penalties.

3 — Match the account to the purpose

Emergency money may need easy access while longer-term savings may tolerate more restrictions. Confirm that the bank or credit union and the account type qualify for applicable Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) deposit insurance, and keep amounts within applicable coverage rules.

Higher APY does not automatically mean a better fit. A fee, balance requirement, temporary rate or access restriction can change the result.