7 Types of Savings Accounts

1. Traditional Savings Account

Traditional savings accounts are easy to find and easy to open, but they don't pay much in interest. Although a regular savings account is a safe place to park your money, other options like a high-yield savings account or money market account (MMA) offer a higher annual percentage yield (APY) with very little additional effort.

Tip: While many traditional savings accounts charge monthly maintenance fees, some banks waive them if you maintain a minimum balance or have multiple accounts.

2. High-Yield Savings Account

A high-yield savings account acts like traditional savings but pays a significantly higher APY. Some pay as much as 10 times the interest (and more), with annual returns topping 4% as of June 2025. Like most savings accounts, these accounts have variable interest rates, so your APY can go up and down based on the benchmark interest rate set by the Federal Reserve.

Many of the best high-yield accounts are at online-only banks. So, this type of savings account is best if you don't mind managing your account over the internet or through mobile banking. Some of the pros and cons to consider may include:

Learn more: Reasons to Put Your Money in a High-Yield Savings Account

3. Certificate of Deposit (CD)

A CD is a fixed-term account that pays high interest rates with a guaranteed return. CDs work differently than other savings accounts: Instead of depositing and withdrawing money whenever you like, you fully fund a CD at the beginning of its term and leave your money in the account until it matures. The interest rate and return on your CD is typically fixed, so you know from the beginning how much you'll earn. When the term ends, you collect your money or roll it into a new CD.

CDs often pay higher interest rates than other types of savings accounts. But, because they tie up your money for a set period of time, they're not suitable for every kind of savings. If you withdraw funds from a CD before it matures, you may forfeit part of your interest as an early withdrawal penalty.

Here are a few pros and cons to consider when you're trying to choose the best CD:

Learn more: Are CDs Worth It?

4. Money Market Account (MMA)

An MMA is a high-interest savings account that allows you to make limited payments directly from your account. MMAs often come with a debit card or checkbook you can use to make purchases or pay bills. Some MMAs require a minimum opening balance or require minimum balances to qualify for high interest rates.

MMAs may charge excess withdrawal fees when you make more than six check, debit or electronic transfer transactions in a month. APYs are competitive, but sometimes lag a bit behind yields for high-yield savings accounts or CDs.

Learn more: Reasons to Put Your Emergency Savings Into a Money Market Account

5. Cash Management Account

A cash management account (CMA) offers some of the same features as both checking and savings, but it isn't held at a bank. CMAs are offered through investment or brokerage firms, and they work differently than regular bank accounts. CMAs are often used to hold uninvested funds at a brokerage, but they can also be used to hold cash and make payments.

A CMA sweeps money into one or more accounts at a partnering bank (or banks). Your money earns interest, as it would in a savings account, but you can also write checks or do debit transactions, as you would with a checking account.

Learn more: Should I Store Cash in a Brokerage Account?

6. Health Savings Account (HSA)

A health savings account (HSA) is a tax-advantaged account you can use to save and pay for health care expenses that aren't covered by a high-deductible insurance plan. The tax benefits of an HSA are substantial: You get a tax deduction for HSA contributions, earn interest tax-free within your account and don't pay taxes on qualified distributions.

Here are the pros and cons of an HSA:

Learn more: Should I Max Out My HSA Contributions?

7. Student Savings Account

Many banks and credit unions offer special student savings accounts designed to help young adults develop good savings habits while they're pursuing an education. Interest rates and terms vary widely for these accounts, so it's a good idea to shop around for the best fit.

Student accounts are often marketed to young adults ages 18 and older who are piloting their accounts solo. One common feature is waived monthly maintenance fees. If your savings are modest, saving $5 per month in fees can be significant since you might not be earning $5 monthly in interest to offset the fee. Students 18 and older don't have to open a special student account; they can open any savings account without an adult co-owner. However, there's no harm in pairing student savings with your student checking account if it provides a convenient, no-cost place to store your money.

Tip: In most states, you must be 18 or older to open your own bank account. Minors 17 and under can co-own an account with a parent or guardian.

Frequently Asked Questions

The Bottom Line

The right savings account depends on many different variables: your savings goals, the amount you have saved, convenience and potential fees. For most people, a good savings account is a safe place to keep your money and earn interest, so your assets grow consistently and reliably. Whatever that means to you, there's a type of savings to get you there.