Different ways to save
Just as there are different reasons to save, there are different ways to do it. The deciding factor is how you plan to use the money — whether it’s for your emergency fund or you’re saving for a bigger goal down the road.
Click here to see the advantages and disadvantages of different savings methods.
YourMoneyCounts®
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Earning interest
When you deposit money in an interest-bearing bank account, the bank pays you for the privilege of using your money while you don’t need it. The amount you earn depends on the interest rate the bank is paying and how frequently the interest compounds. (The more frequently, the better for you.) The number that tells the story is the APY, or annual percentage yield. Because of compounding, 
the APY is higher than the nominal interest rate that the bank is paying.
