Savings should comprise of the extra money you put away after all outstanding debts have been paid off. It stands to reason that if you put away a percentage of your salary into a low-interest savings scheme instead of using the money to pay off a high-interest credit card, it is not worth it in the short and long term. This excludes mortgage repayments and leases which are assets.

Here’s a list of the most popular savings methods used in the U.S. today.

Savings Accounts

Both banks and credit unions offer savings accounts. Credit unions are financial institutions run on a cooperative basis. They are managed, owned, and created by its members. The money put into a savings account is insured by the FDIC up to a certain amount. Restrictions are sometimes applied to savings accounts. Service fees may apply if more than the permitted amount is withdrawn, for example. Interest rates applicable to savings accounts are low.

High-Yield Bank Accounts

This type of savings account is also FDIC protectedbut earns a higher interest rate. The reason for the higher yield is because a more substantial amount is required before this type of savings account can be initiated.


Also known as Certificates of Deposit, you can obtain these via most credit unions and banks. They are FDIC insured and offer a higher interest rate. The larger the amount deposited and the longer it is left to mature, the higher the interest. If you need to withdraw from this form of savings account before the stipulated investment time is up, you will accrue penalties.

If all of this information overload seems confusing and you’re not sure which savings opportunity to select, you can always turn to highly specialized Cincinnati Investment Firms to create a portfolio for you as part of their investment service strategy. If you live in the area and want to discuss your savings and investment choices, this is the wisest choice you can make for you and your money.

Money Market Funds

This is a mutual fund that invests your savings into low-risk securities. It is one of the safest forms of savings and investment and provides returns on a par with those given to short term savings schemes. They are not insured by the FDIC, but if you choose to do it through a credit union, the National Credit Union Agency insures your investment.

Treasury Notes and Bills

Also known as U.S. government bills and notes, but most commonly called treasuries. These are government backed savings. They are state and local taxes exempt. You buy them at a discounted price and wait for them to mature, after that they are worth their full value. Treasury bills can be bought with a maturity date set from 2 to 10 years.


Bonds are a relatively complicated low-risk investment strategy. They act sort of like an I.O.U where funds are borrowed to someone else (often local governments) and paid back in the future with monthly interest payments. 

If you are interested in learning more about the bottom line when it comes to any savings and investment methods mentioned here, visit your local investment firm advisor to discuss your options.