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What Kind of Savings Option Works For You?

It can be hard to determine where to start your savings goals. With the many different options on the internet or at your local bank, it can be overwhelming. How do you decide between a basic savings account and a certificate of deposit?

To start, there are four main savings account options out on the market. Here’s a breakdown of each and how they can fit into your wants and needs.

Traditional savings

If you’re looking for a place that’s safe, easily managed and carries hardly any risk, this is your spot.

Traditional savings accounts may earn little interest — but they make up for it with flexibility. You can usually withdraw from this account up to six times per month, and there aren’t a lot of minimum requirements to avoid fees or penalties. You can also add funds to this account as much as you’d like.

There isn’t much flair with traditional savings accounts, making them the ideal fit for those looking for something simple.

Tiered-rate savings

Most banks also offer tiered-rate accounts, where you can earn higher interest with a few more limitations. The tiered-rate term comes from the increasing interest rate as the account’s funds increase through different “tiers.”

For example, Peoples Bank’s Elite Savings account offers a higher rate of return with each tier as your balance grows, with the highest tier being $350,000 and up.

These accounts usually require a minimum amount to open and maintain to avoid a monthly fee. Both this account and traditional savings accounts are insured by the Federal Deposit Insurance Corp., insuring up to $250,000 per account for a single ownership party.    

Tiered-rate savings accounts are ideal if you have a significant amount of money to stash and are looking for more growth potential.

Money market

Money market accounts are similar to the aforementioned savings accounts, but often come with check-writing or debit card capabilities.

Money market accounts typically have minimum deposit and balance requirements but offer competitive interest rates. You’ll also have to keep in mind withdraw limits every month. Not to be confused with money market funds, money market accounts are insured by the FDIC. 

People looking for both growth potential and some check-writing capabilities can choose this option.  Peoples Bank’s Advantage Money Market account offers this flexibility coupled with a tiered-rate feature to provide a competitive rate as your balance increases. 

Certificates of deposit

Certificates of deposit, usually written as CDs, offer some of the best interest rates among this group. The biggest trade-off? You’ll have to leave your funds alone for a set amount of time.

CDs are accounts that lock in your money for certain periods — 12 months, for example. It’s possible to withdraw your money, but you’ll have to pay a penalty on the interest and possibly on the principal balance.

The longer the time, the higher the interest rate. CDs are perfect if you’re saving money for a certain event, like a vacation or wedding. Read more about CDs in one of our previous blogs from this year.

Peoples Bank offers all of the above options and more. To learn more and see specific rates and rules, go to