If you’re building up your savings, you’re probably keeping the money you’ve set aside in a savings account. By and large, that’s a solid plan. Traditional savings accounts give you interest on the money you’ve in that account, yet still keep your funds available if you need them.

However, traditional savings accounts aren’t the only place to keep your money. There are several savings account alternatives, and knowing what they are might just help you do more with your money.

Money Market Accounts

Once you’ve got at least $2,000 in your savings account, you might want to look into opening a money market account. It offers a significantly higher rate of interest than a traditional savings account, but it also keeps the money available if you need it.

This type of account is an excellent choice for people who have built up their emergency fund. Ideally, you shouldn’t have to withdraw money from your emergency fund very often, so why not let that money earn more interest? It won’t make you rich, but it will let you add a bit more to your financial safety net with no additional effort on your part.

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Certificates of Deposit

When you get a certificate of deposit (CD), you’re letting a financial institution keep your money for anywhere from a few months to a few years. In return, you’re getting a high rate of interest on your money.

This is also a good option for people who have maxed out their emergency fund, but it’s also ideal for people who have money they’re saving for long-term financial goals, such as retirement or buying a house.

High-Yield Checking Accounts

Everyone knows that savings accounts give you interest. However, many financial institutions have started offering checking accounts that provide interest as well.

It’s important to note that, while these types of accounts can seem attractive, many of them also come with conditions, like having to use your debit card so many times in a month, to get the interest. Also, your checking account balance will fluctuate more than your savings account, so you might not be earning as much in interest as you think.

There’s nothing wrong with opening a high-yield checking account, so long as you know what you’re getting into and use the interest to supplement your savings account instead of making it the cornerstone of your savings strategy.

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Index Funds

When you put money into an index fund, you’ve moved solidly into the world of investing. An index fund is an investment that tracks a market index, such as the Dow Jones or the S & P 500. They’re pretty easy to understand, and many stock market investors, including Warren Buffet, recommend them for beginning investors.

Before you put your money into an index fund, though, you should know that investing your money in any kind of fund or stock carries some risk. You should also know that in order to benefit from most index funds you’ll need to leave your money in it for a while.

Build Your Savings With First Alliance Credit Union

A traditional savings account is a good place to put away money, but it’s not your only choice. Several alternatives exist, and depending on your financial situation, you can take advantage of them to make your money work for you.

If you want to put the money you’ve saved to work for you, become a member of First Alliance Credit Union and take advantage of the services we offer. In addition to opening a traditional savings account for only $5, you can also open a money market account, a certificate of deposit and keep track of all your savings on our robust online banking platform.