Savings and CD Accounts

• Savings and CD accounts differ slightly. A savings account is more flexible, allowing holders to deposit money regularly month by month. There are some limitations on when and how users can withdraw money from a savings account, but most restrictions fall well within user financial plans. CDs, or certificate of deposit accounts, are more structured than savings accounts. They often require a specific amount of money for a deposit, and have an interest that does not change for the length of the CD term, after which customers can either withdraw their funds or renew the CD. Savings accounts are advertised more heavily online, but many CD accounts can also be funded through online banking applications.
  
  

Deposits

• Online savings accounts will often have different deposit requirements than traditional versions, so users should examine the requirements carefully. The best online versions require only a $1 deposit to open, but some accounts may require as much as several thousand dollars for a minimum deposit. Other accounts may only require several hundred dollars; generally, accounts with higher minimum deposits have better interest rates.
  
  

Advantages

• Online savings and CD accounts have several clear benefits to users. They can be managed remotely. By logging into the bank's online services, users can check their balances and transfer funds between accounts. Online accounts are unique in that they allow customers to open them in the online application as well, allowing for faster, easier financial planning.
  
  

Account Changes

• If you do decide to open a savings or CD account online, keep careful track of banking changes to these accounts. To save money, many banks are choosing to cut both online savings and CD interest rates. This means you get a smaller payout for the funds you deposit. Choose a bank that is keeping savings rates steady to maximize your own profit in whatever account you open.