Savings Accounts

A money market account is a type of savings account that usually comes with certain checking-account features, like a debit card and checks, while often providing higher interest rates than many standard savings accounts. In exchange for these features, the number of transactions you can make per month will be limited. The minimum balance required to avoid a monthly fee will often be higher than with other bank accounts, too.

Like savings and checking accounts, money market accounts are FDIC insured, meaning the value of your investment is protected up to $250,000 even if your bank goes out of business. Check out the table below to learn how money market accounts compare to other products such as checking accounts, savings accounts, and certificates of deposit (CDs).

Money Market Accounts vs. Checking, Savings & CDs

Note: Interest rate and insurance information in the table above is based on data from the Federal Deposit Insurance Corporation. Fee information is from WalletHub's 2022 Banking Landscape Report.

If you're interested in getting a money market account (MMA), WalletHub's money market account comparison tool can help you find the best option.

A savings account is a type of interest-earning bank account that usually provides a higher return than a checking account but is slightly less accessible. Many savings accounts come with a limit of six withdrawals or transfers per month. Withdrawals via bank teller or ATM are excluded from this number.

Key Things To Know About Savings Accounts

• Interest.
  The average savings account has earned interest at a rate of 0.04% - 0.22% APY from 2009 to 2022, according to the Federal Deposit Insurance Corporation. This is significantly better than checking accounts, which earned interest at a rate of 0.03% - 0.15% APY (if they earned interest at all).
• Monthly maintenance fees.
  Savings accounts usually come with a monthly maintenance fee, which can often be waived by meeting certain requirements. The requirements can include things like maintaining at least a certain minimum daily balance or linking a checking account. Students should also be able to find accounts willing to waive this fee while they are in school.
• Other fees.
  Savings accounts can incur a number of fees, such as fees for having insufficient funds, fees for excessive withdrawals, or fees for being mailed paper statements. How to access funds. Funds can be accessed through ATMs (in some cases), bank tellers, or ACH transfers via online banking. Savings accounts usually do not come with debit cards or checks, though some do.
• Transaction limits.
  Many savings accounts limit customers to six withdrawals or transfers per month, excluding those made via bank teller or ATM.

Savings accounts are easy enough to access when necessary, but the moderate barriers to access help lower the temptation to use them for impulse purchases, making a savings account an essential tool for any modern consumer.

If you're interested in opening a savings account, WalletHub's savings account comparison tool can help you find the best option.

You should keep three to six months' living expenses in your savings account, plus a bit extra. Most experts recommend saving enough money to live on for the amount of time it would take you to find a new job if you were to lose yours and adding a little more for emergencies.

How to Determine How Much You Need to Keep in Savings

1. Split your purchases into two categories: fixed and variable. Fixed expenses are those that are roughly the same each month. Your rent or mortgage payment, insurance premiums, and internet and cell phone service would all fall into this category. Variable expenses typically fluctuate more from month to month. These are expenses about which you have more discretion, like entertainment and dining out, as well as personal items like clothing.
2. Consider how you could cut most or all of your variable expenses in the event of financial hardship. Whatever you can't imagine going without, add to the total of your fixed expenses. This should be equal to what you expect one month's living expenses to be for you.
3. Multiply the sum of your fixed and variable expenses by the number of months you anticipate it would take you to find a new job if you were to lose yours. The resulting figure is the minimum amount of money you should keep in your savings account.
4. Add a bit more for emergencies. Things like unexpected car repairs and medical bills can easily throw your budget off track. Prepare for them by adding a small cushion to your savings account.

Keeping a lot more than this in your savings account could be unwise. Savings accounts earn very little interest – just 0.04% - 0.22% APY on average between 2009 and 2022. When you factor in inflation, your money could actually lose value over time. Consider opening a retirement savings account, like an IRA, or investing in stocks or bonds with any spare cash you have above and beyond what you need to keep in savings.

If you're in the market for a savings account, consider using WalletHub's Online Savings Account Comparison Tool to compare interest rates, monthly fees, signup bonuses, and more.

You can open a Coverdell Education Savings Account at banks, credit unions, mutual fund houses, or discount brokerage firms.

Mutual fund houses and discount brokerage firms typically offer better options and lower fees.

TD Ameritrade and Ally Invest are among the discount brokerage firms that offer Coverdell ESA plans.

Depends on what you mean by safe. If you mean your funds will not lose value, then no because mutual funds typically fluctuate in value depending on stock market, economy, etc. Depending on how aggressive the fund is, it could go up or down in value accordingly.

But, if you mean they won't run away with your money, then yes its very unlikely they'll do that, especially if it's an established financial institution.