Quiz: Which Savings Account is Best for You?

Trying to decide where to park your hard-earned money? The best savings account product for you will not only depend on your goals and priorities but also on your personality. Understanding the differences between the different types of savings accounts will also help you manage your money.

For example, are you a planner with a purpose? Then you may prefer a certificate of deposit (CD) – a type of deposit account with a high interest rate and that's considered one of the safest savings options out there. 

What Is a Certificate of Deposit (CD)?
If spontaneity is your middle name, your perfect match may be a high-yield savings account – a type of savings account that typically pays significantly more than the national average of a standard savings account. So, you'll earn a decent return and still be able to access your money.

What Are High Yield Savings Accounts?
The choice is yours, but here are 10 questions to help you decide which type of savings account is right for you.

 

How to Choose a Savings Account: 10 Questions to Ask 

 

 

1. Do you have a goal for your savings in mind?

A. Yep! I'm working toward a big purchase and need time to build.
B. No, but that's okay. I don't plan to use my savings for awhile.
C. Not really. I'm just trying to give myself more financial room to breathe.
D. Yes! I'm planning to buy something big soon.

 

2. When do you think you'll use your savings?

A. In the next year or two.
B. Not for another five years, at least.
C. Very soon.
D. I'm not sure.

 

3. When it comes to money, are you the planning type?

A. Totally. I've planned out the next five years.
B. Yes. I try to plan at least a year or two in advance.
C. Not really. I value spontaneity.
D. Sure. But I prefer making month-to-month plans.

 

4. Will you need quick access to your money for emergencies?

A. No. I have more than enough cash saved up in other accounts.
B. It's possible, but unlikely. I have other resources I can turn to in a pinch.
C. Yes, that's why I'm saving. I'm building a rainy-day fund.
D. I hope not! Isn't that what loans and credit are for? (Our answer: No!) 

 

5. Do you plan to occasionally tap into your money?

A. No. I am putting it into savings for a reason.
B. Probably not. I like the idea of setting aside money that I can't spend easily.
C. Yes. I plan to dip into my funds whenever I need them.
D. Maybe. I'm not sure what the next year will bring.

 

6. What do you want from a savings account?

A. The highest possible interest rate. Help me earn!
B. Guardrails. I don't want to be tempted to spend. 
C. Accessibility. I should be able to use my funds whenever I want.
D. Versatility. I want solid rates without sacrificing flexibility.

 

7. What do you value more: Freedom, predictability or high earnings?

A. High earnings, for sure. 
B. Predictability. I have enough on my mind. 
C. Freedom!
D. Not sure.

 

8. How comfortable are you with taking financial risks?

A. Not very. That's why I like making long-term plans.
B. Very comfortable. I'm willing to risk paying a penalty if my plans don't work out.
C. Comfortable, but not enough to risk paying extra if I change my mind.
D. Not at all. That's why I like keeping my savings liquid and accessible.

 

9. Do you follow financial news to keep up with the latest interest rates?

A. No. I'd rather set it and forget it with my savings.
B. Yes, because I want to lock in the most favorable rates.
C. Sure. I like being able to move quickly to take advantage of rising interest rates. 
D. Not really. Interest rates aren't a big priority.

 

10. How are interest rates doing these days?

A. They are low and staying that way.
B. Not bad. But rates aren't going up for awhile and could even fall soon. 
C. Interest rates are on the rise. 
D. I have no idea. I don't pay that close attention.

 

 

So, how did you do?

If you answered mostly As and Bs, consider a certificate of deposit. 
You'll fetch a higher rate of return and will enjoy more predictability with your savings. Synchrony Bank offers CDs with great interest rates and flexible terms (from 3 months to 5 years).

What Is a Certificate of Deposit (CD)?
But if you answered mostly Cs and Ds, then you may be better off choosing a high-yield savings account instead. 
The Synchrony High Yield Savings Account currently offers an excellent interest rate and has no monthly fees, no minimum deposit, and no minimum balance required. Plus, you'll enjoy the flexibility to access your money whenever you need it.

What is a High Yield Savings Account?
If you need some extra inspiration, check out what others have to say about setting savings goals and watching their money grow.

High Yield Savings Account: What it is and How it Works