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Just because you want to save a bit of money doesn’t mean that you have to lock your money away for a long period of time. The key is to find smart ways to save that will allow you the flexibility that fits your financial situation.

One way to earn competitive interest rates while still having access to your money is to open an interest checking account . While many people tend to dismiss checking accounts as a way to save, many banks offer competitive annual percentage yields (APYs) on their interest checking accounts. In fact, at about 5 percent of financial institutions, an interest checking product boasts the institution’s highest APY (Source: Informa Research Services). Interest checking accounts allow you to spend your money freely with unlimited check writing while still earning up to 4 percent, or 6 percent if you satisfy certain requirements (such as direct deposit, using a debit card, etc…).

Additionally, with the exception of the aforementioned 5 percent, many financial institutions offer money market accounts that tend to offer substantially higher APYs compared to their interest checking accounts but with limited to no check access. Be sure to shop online to find and compare rates. Additionally, keep your eyes open for promotional rates and products that many financial institutions offer.

If having accessibility to your money is not your top priority, certificates of deposit(CDs) might be a good option for you. Since you should typically try to leave your money in your CD until the end of the term, laddering your CDs may be a good idea. Laddering your CDs can provide you with some of the monetary liquidity of other accounts while still allowing you to reap the benefits of high APYs. By laddering your CDs , not only can you maximize your returns, but you will also have money becoming available at different times. For instance, depending on your financial situation, you may want to deposit your money in CDs that mature in increments of three, six, or twelve months. Thus, you don’t have to be concerned about not having money available and you can make sure you make the most of your CDs . In addition to laddering your CDs, consider using some of the non-traditional CD options that are available, such as those with bump-up rates, add-on features, and no-penalties for withdrawals during the term. Get the best rates by shopping online to see what different financial institutions are offering.

By using a few of these savings methods, you can feel better knowing that your money is working for you while still being available for unexpected purchases and other expenses.

Source: Informa Research Services