Interest is the key to how your savings grows. It's the fee that the financial instution pays you for keeping your money in a savings account. That's right! You earn this money.
There are other types of savings accounts:
- Money Market Accounts - pays you interest and allows you to write a certain number of checks each month. You must keep a minimum balance.
- Certificates of Deposit - pays more interest than a Money Market Account. But you must keep your money in the CD for a set time period.
- Individual Retirement Account - Pays you interest that is not taxed until you retire.
- Education IRA - It allows you or your parents to put away money for your colleged education. Interest is not taxed if the money is used to pay for college.
Keep reading to learn more!
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