If you want to open a savings account, you should do your research first. Not all savings accounts are the same. Which account is best for you depend on several things? These include how much you want to save, how much money you have to put in at the start, whether you might need to get money out before your goal date, and how comfortable you are with technology. Here are four savings accounts for investors that people can use, as well as some tips on what to look for and what kinds of investors each account is best for.

Basic Savings Account

These accounts, sometimes called passbook savings accounts, are a great way to start earning interest on your money and saving it. When customers go to their bank, transactions on a basic savings account are updated in a passbook or on a statement sent to them regularly. The Federal Deposit Insurance Corporation (FDIC) protects savings up to $249,999 in a basic savings account. This makes it a good choice for investors who want a low-risk savings account that is easy to access. The NCUA backs up the money in basic savings accounts at credit unions (National Credit Union Administration). Because it's easy to put money in and take it out of these accounts, the interest rates are often lower than other savings accounts. If you are new to saving or want to teach your child about saving, a simple savings account might be an excellent place to start.

Online Savings Accounts

If you like how easy it is to do your banking online, an online savings account might be correct for you. Depending on the type of online savings account you open, you may be able to see, deposit, and transfer cash online 24 hours a day, seven days a week, and take money out of an ATM at any time. You can access them from any mobile device, like a tablet or smartphone. The NCUA or the FDIC may also back deposits in such accounts.

Those who prefer online savings accounts might do so because they receive greater interest than traditional ones. Since these accounts aren't handled by staff in branches, it costs less for banks to keep them up and run. Because of this, they may often offer higher interest rates than regular savings accounts. Online savings accounts are an excellent option for tech-savvy people who want to do their banking and earn more interest than a traditional savings account.

MMAs (Money Market Savings Accounts)

Banks and credit unions offer MMAs, which are customized savings accounts (Money Market Accounts). They're also known as money market savings accounts or deposit accounts. These are not the same as money market mutual capitals presented by financial firms, which are not covered. The FDIC protects money up to $249,999 that is kept inside a bank MMA. The NCUA protects money saved in an MMA at a credit union.

If you keep a certain amount in these accounts each month, you might get a higher interest rate or not have to pay any fees. Customers who want more interest than a regular bank account and are willing to keep more money in their account can open a money market account. They are suitable for investors who want to save money for a few months to a few years. Before that time, the money can be taken out.

CDs (Certificate of Deposit Account)

CDs (Certificates of Deposit Accounts) are good savings accounts for people who want to save for a specific goal with a deadline. Most financial institutions and some brokers offer certificates of deposit (CDs). Since a set amount of your money is invested with the institution for a set amount of time, CDs often provide a higher interest rate than traditional and online accounts. This could take anywhere from a few months to a lot of years. Most of the time, the CD will last longer if it pays a higher interest rate. The NCUA or FDIC backs CDs up to $249,999 to protect investors in case the issuer runs into financial trouble. If you want to save up for a big financial goal in the next five years, like a down payment on a house or a car, you might want to look into a CD.

The Bottom Line

There are many kinds of savings accounts that investors can choose from. A basic savings account is a low-risk account that is easy to use and has a low rate of return. It is perfect for people who are just starting to save money. For people who know how to use internet banking, an online account is a convenient way to get a higher-interest account. There may be benefits to money market savings accounts, such as higher interest rates for larger deposits. Certificates of deposit offer a higher interest rate in exchange for locking away a set amount of savings for a certain amount of time, which can be anywhere from a few months to five years. The NCUA or the FDIC backs deposits in these savings accounts up to $249,999.