Options for saving money

As consumers deal with an uncertain future for the personal finances, more people may be focusing on saving money.

In a recent column for USA Today, Sandra Block noted that the options available for saving money may not give the highest returns in this market. However, when the economy improves, so should interest rates.

With that in mind, Block suggested a number of options for consumers who want to concentrate on saving money. For example, some consumers may consider putting their money in a certificate of deposit (CD). Consumers may consider one-year or five-year CDs. Though the returns on five-year CDs may be higher, they also tie up a consumer’s money for a longer period of time, which would limit reinvestment opportunities.

Block noted that some banks are offering high-yield savings accounts, which may range from 1.75 percent to more than 4 percent.

“However, to earn these rates, you’re usually required to set up direct deposit, receive your bank statements online, and use your debit card a certain number of times per month,” Block said.

Recently, financial columnist Liz Pulliam Weston noted that savings accounts are the safest way for people to keep their money when trying to save for a house. Unlike other investment options, she noted that savings accounts give people a better guarantee that their money will still be there in the future.