As the stock market continues to show the vital signs of recovery, some consumers are tempted to dabble in the market. Caution is advised. Some financial analysts advise clients not to place all their savings on Wall Street. High interest savings accounts are other financial tools, which yield an honest return.

While some analysts laud certificates of deposits, there are a few  drawbacks. For instance, a short term CD rate generally accompanies ultra low interest rates, presenting a better return with a high interest savings account.

While a long term certificate of deposit assures an investment return, the accountholder is not supposed to touch the funds for a specified period. Depending the bank, there are specific guidelines and penalties for making withdrawals.

For the frugal saver, who has the discipline and does not mind not having access to their funds for a 4-year commitment, some CDs accompany a higher rate.

Alternatively, if inflation gains traction, maintaining funds in a CD may not be the smartest choice. 

Flexibility is what makes the high interest savings account so attractive. Many certificates of deposits require accountholders to issue withdrawal requests by mail or in person. With the autonomy to withdraw or access funds at anytime, the high interest savings account possesses many redeeming qualities over the certificate of deposit.

• Up to six monthly transactions (includes withdrawals)
• Pure liquidity (an ability to access funds at any time)
• Online banking convenience
• Nominal service fees

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