We all know it’s important to save money for emergencies and to put money aside for larger purchases, such as a down payment on a new car or even a home. But where should that money go? As with all financial products, consumers have many choices when it comes to where and how they store their savings. Let’s review the different types of savings accounts to see what’s right for you.

Traditional (Basic) Savings

When you want to stash some cash but be able to access to it quickly and easily, a basic savings account is the way to go. Typically offered by traditional banks and credit unions, these accounts will earn you a small annual percentage yield (APY) on your savings balance, but it’s nothing life changing.

If you’re establishing an emergency savings account, a basic savings account is the way to go. You can set it up to link with your bank account for easy transfers back and forth. You may even be able to arrange a portion of your direct deposit to go into the account every month.

In most cases, you can manage these accounts online, by phone or in person at a bank or credit union branch. If your savings account is with a bank, confirm they are insured by the Federal Deposit Insurance Corporation (FDIC); if it’s at a credit union, double check to ensure they are affiliated with the National Credit Union Administration (NCUA ).

High-Yield Savings Accounts

Unlike traditional savings accounts that offer a low APY, high-yield savings accounts give you much more bang for your back in terms of return. These accounts are typically available from online banks and credit unions. Since you won’t have a physical branch to visit, you don’t want to open this type of account unless you’re very familiar and comfortable with managing your accounts exclusively online or through an app.

Transferring funds into or out of a high-yield savings account may take a few days, so it’s probably not the best choice for emergency savings you typically need to access right away. But it’s perfect if you have a decent amount saved and not designated for a specific reason. Let those funds sit in a high-yield account and earn money for you.

Once again, be sure your deposits in these accounts are backed by the FDIC or NCUA. 

Certificates of Deposit (CDs)

Available at both traditional and online banks, certificates of deposit — or CDs — are time deposits. That means once you open a CD, you must wait a specific amount of time before you can access your money again. It can be as little as 30 days or as much as 60 months. But no matter how long, if you access the funds before the CD matures, you face penalties for early withdrawal. Typically, the longer the term, the higher the rate of return.

CDs are an excellent choice for people who have good intentions of saving money but are easily tempted to withdraw funds from a traditional, high yield or money market savings account. CDs offer the built-in discipline of not being able to access your money for a set amount of time. Plus, there is no obligation to withdraw the funds at the end of the term. You can simply roll them into a new CD and continue to watch your money grow.

A certificate of deposit is not the right choice for emergency savings since you won’t be able to readily access funds if you need them on short notice.

Money Market Accounts

If you’ve ever wished you could combine the return of a high-yield savings account with the convenience of a checking account, you’ll want to check out a money market account. Traditional banks, online banks and credit unions all offer them. What makes money market accounts unique is their higher annual percentage yield, combined with the ability to write checks or use an ATM or debit card linked to the account.

There are a few things to take into consideration about money market accounts. Some may offer tiered interest, meaning you’ll only receive the highest rate of return if you meet a specific balance requirement. And although these accounts make it easier than other types of savings accounts to access your funds, you may face a penalty for making more than six withdrawals per month.

Specialty Savings Accounts

Did you know there are savings accounts specifically designed to help you pay for holiday purchases (Christmas Club Accounts) or savings accounts meant especially for kids? In fact, there are specialty savings accounts for a wide range of applications and demographics, and all are designed to help you reach specific savings goals. Whether it’s saving for a down payment on a new car or home, putting money away for retirement or building a college fund, there are specialized savings products to help you meet all those goals.

And if you’re not sure what you need, just ask. Any bank or credit union branch will have someone on the team who can explain the different types of savings accounts available and help you map out a strategy to meet your goals.