You have some savings and you want to put them aside, you need a place which is suitable for you. There are so many institutions with tempting offers, but you have to choose the one, which best fits the following criteria:

• how often you can have access to your account and which is the method of access that you prefer more;
• how much is the interest for the amount of money that you have and does it qualify for the best rates;
• what kind of service do you prefer more – are you like in-person customer service or you are more low-maintenance customer;
• what are the penalties if your plans have changed and you need to get access to the money sooner than you thought;

You have a few options:

1. Checking accounts – they are used mainly for transactions, then for savings, that is why the interest here is not really high. So you do not earn so much from the interest. The other thing is that such accounts require a minimum balance that has to be inside the account otherwise there are charge fees, and sometimes it is both. But the positive side is that you can get your money from the closest ATM, or directly from the bank, which is usually not far away from your home. And your account is insured be the Federal Deposit Insurance Corp., like all bank accounts are.

2. Saving accounts – That was the most popular way of saving money in the old days. It is good that people are investing in areas which are more yielding. Pros here are that the bank account is insured be the FDIC and usually the minimum for opening and account is low. But the biggest con is that the return of your savings is quite low.

3. High-yield bank accounts – You can find such type of account nowadays. They are flexible, because you can add or withdraw money when you like, and there is no specific period when your money is locked in order to receive the interest. The positive things here are also the rates, which are better then a standard bank rate and some of the accounts are insured be the FDIC. There are some cons for this type of accounts though – if you need your money fast, you can not get them from and ATM. You have to coordinate your cash flow by transferring your funds from the online bank to a linked saving or checking account. This action usually takes from two to five days. You also need to read carefully the conditions for interests or rates which are limited-time.

4. Money market deposit account – They are offered by banks, and are insured by the FDIC. They also allow different types of access – ATM, transfer, checks. But they require a limited balance and limited number of transactions for the month. So if your account goes below the balance minimum or you have more transactions then you are allowed you might pay a penalty.

5. Money market funds – Such type of funds are offered by mutual fund families or brokerages. The pros here are that the access to you funds is quite easy. The rates of the funds are higher then the rates of the market accounts. Your principal is also relatively safe, because of the lengths that issuers are going to keep the price of each share (NAV) at $1. But these money market funds are not insured by the FDIC, and there is no guarantee that the NAV will stay at the price of $1.

6. Certificates of deposits (CDs) – They are usually offered by banks and sometimes can be bought using brokerages. They are of course FDIC insured, and depending on the defined period (which can be from three to sixty months) they can pay more in return then other accounts. But the negative side is that you can not touch you money during the defined period, otherwise you have to pay a penalty.

7. U.S. government bills or notes – They are also called treasury bills and treasury notes. The first ones mature for less then one year, and the others between two and ten years. These are considered to be the safest investments in the world, because they are backed up by the U.S. government. They can be directly bought, without any commissions and they do not have local or state taxes. The negative thing is that if you need to use the money fast and you can not wait for the security to mature, there is a possibility that you will not get back the original investment.

8. I Bonds – These bonds are issued by the American government and are backed up by the government. They are called like that because the idea is to be protected from the inflation risk. They are sold for different prices starting from $50. They can be directly bought, they are tax-free and taxes on earnings can be deferred for years, even up to 30 years. The only negative thing is that you need to hold an I Bond for at least one year, and there is a penalty if you redeem it before you have it for five years.

9. Municipal bonds – They are issued by local or state government for projects that have public good. They are quite secured just a step down from the government securities. There are no federal or local taxes if you live in the area. But interests are not very high, you may pay a commission to buy it, and you can not get the original investment if you need the money before the bond matures.

10. Corporate bonds – These represent the debt which is issued by a company. If you want short-term savings this could be a good option, and you can receive more then some other accounts. Except the commission that you pay to buy it and the option that you do not get your investment back if you sell it, the other negative thing is that the company which has issued the bonds could suspend the interest payment.

11. Bond funds – These are mutual funds. The pro here is that you minimize the risk when you pick up a bond from a company, but if there is a change in the NAV, then you can not be sure how much of your original amount will be available. And you also have to pay a commission and an outgoing expense.