Bank accounts such as an IRA, CDS, etc...?

Question

i need some info on some of these bank accounts, im 18 with a job that pays around 200 to 230 and im trying to save money for a car and i need an account that wont charge any fees and would pay high interest rate and wont make me keep my money in the account for a long time such as til i turn 591/2 or so, i need some info on the CD accounts! how do they work? do they only require only about 6 months of keeping my money? i need some info please....

Answer 1

An IRA is a retirement account.  It's what you don't want.  A Certificate of Deposit (CD) requires you to tie up your money for a certain length of time in return for a higher rate of interest.  If you want to withdraw your money before the CD comes due, there are very high penalties.

Look into online savings accounts.  They offer complete freedom to withdraw and yet pay a higher rate of interest than traditional banks.  Many online banks also offer CDs for an even higher rate of interest.  Make sure the bank you choose is FDIC insured.