Typical Investment Options Available at your Local Bank

One place most people start when it comes to putting money away is a simple savings account. You can open a savings account at your local or online financial institution. What many folks don’t know is that there are a number of other investment options that earn varying amounts of interest available to you at this same bank. It’s a good place to start when you’re first learning about investments. Take a look at these types of investment options available at your local bank.

High Interest Savings Account

A high interest savings account is, as its name suggests, one that pays out a higher interest rate than the national average. Such accounts usually require a larger minimum balance than your average savings account, however. If you can afford to meet your bank’s requirements, this may be a good option to start out with as a way to save for short-term goals.

Certificate of Deposit (CD)

A certificate of deposit, or CD, is a savings account that comes with a time requirement. This can be between a month and five years, usually. During this timeframe, you cannot remove your funds from the CD without penalty. However, the reward is that you can expect to earn a higher interest rate on the money you save.

College Savings Accounts (529 Plans)

If you’re saving for higher education, either for yourself or for a loved one, a 529 plan may be the right kind of savings account for you. Contributions to this type of account are tax-free and can be used for costs related to higher education, as long as the student is enrolled at least half-time.

Goal-Oriented Savings Accounts

The term “goal-oriented savings account” encompasses a number of different options. This type of account is one that sets money aside for a specific purpose. Typically, the interest rate isn’t necessarily higher, but there may be some rewards offered by your bank to encourage this type of savings. The benefit of such an account is usually psychological. Designating your funds for a particular type of financial goal can increase your motivation to save. Goal-oriented accounts include Christmas club accounts and other savings clubs offers, along with sub accounts that fall under your primary savings.

These are just some of the kinds of investment accounts you may find available at your bank. Talk to your financial institution’s representatives to learn what they have to offer to meet your savings needs.

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