4. Certificates of deposits: The best part of this savings plan is that the bank holds onto your money for a specific time it might be a few weeks or several years but they also provide a guaranteed interest rate. Certificates of deposit are considered as a low risk investment and also one of the best retirement savings options as they allow you to accrue interest frequently throughout the deposit term. Thus you can accurately calculate your expected earnings amount too. When compared to other savings plan like money market or regular savings account this savings plan might require a bigger minimum deposit. Same as other accounts if you try to withdraw cash before the maturity date a penalty will be incurred.

5. Emergency funds: Whenever you run into an unexpected and expensive problem, your budget gets hurt. By saving for emergency funds, these can help you pay for unpleasant surprises without relying heavily upon credit. Emergency savings can be used for unexpected car repairs, replacing appliances, or for costly medical procedures. A large enough emergency fund can also help sustain your family finances if you suffer from unemployment or under-employment. Emergency savings should be always accessible and liquid. A high-yield savings account is often preferred for an emergency fund.

6. Individual savings accounts: Individual Savings Accounts are a kind of savings accounts where you earn interest that is tax-free. However, there are certain limits on how much you can deposit each tax year. While ISAs do not always offer the highest rates of interest in the savings account market. If you are a non-taxpayer then you should opt for the highest paying savings account, regardless of whether it is an Isa, as you are entitled to receive your interest tax-free anyway.