Choose the right type of account to help you reach your short-term savings goals.
What are you saving for over the next few years? Perhaps you’re getting married, buying a house, planning a big vacation or simply putting money aside for a rainy day. Whatever your short-term savings goals, it’s important to understand your short-term savings options.
Before you start saving for short-term financial goals, consider these factors:
- Liquidity: How easy is it to get your money out if you need it for an emergency?
- Fees: If they’re high, they can take a big bite out of what you earn toward your short-term goals.
- Security: Will your deposits be insured by the Federal Deposit Insurance Corporation (FDIC)?
Here's an overview of your savings options:
- Standard savings accounts: Your deposits in these types of accounts are FDIC-insured, and you can easily transfer or withdraw your money. Savings accounts earn interest, but there is a limit to the number of certain types of withdrawals that can be made.
- Bank money market deposit accounts: These accounts may earn higher interest rates than a checking or standard savings account, and are FDIC-insured up to applicable limits. This type of account frequently provides limited check and bill payment access, but keep in mind that banks may impose fees based on minimum balances and there is a limit to the number of certain types of withdrawals that can be made.
- Certificates of deposit (CDs): CDs generally offer a higher rate of interest in exchange for your agreement to keep your funds on deposit for a set period of time. Sometimes there's a fee for early withdrawal of your money, so make sure you won’t need the money before the term is up, or choose a CD that offers early withdrawal without a penalty. CDs are FDIC-insured up to applicable limits.
Once you understand your options, the next step is to put savings on autopilot.
Automatic savings transfers can simplify saving for short-term financial goals: Set up how much money you want to transfer from checking to savings and how often you want transfers to take place. You'll build your savings account balance automatically—without taking on any additional risk. If you need to change or cancel an automatic transfer, you can simply sign in to Online Banking and make the adjustment.
Ready to get started? Let us help you find the right savings account.
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