CDs, Stocks, or Savings Accounts? The Best Ways To Grow Your Money

Grow Money

Most of us work our entire lives in the hopes that we’ll be able to retire one day and enjoy the fruits of our labor. But it’s not enough to put in the work required of day-to-day life if you aren’t being wise about the money you save. Passively grow the money you have saved over time by employing one of these savings or investment methods.


Savings Account

 You’re probably already familiar with a savings account, as most people had one set up when they opened their checking accounts back in the day. Unlike most checking accounts, savings accounts offer the opportunity to earn interest on the money you have “invested” in the bank. This money is quite easy to move around and withdraw as needed—as long as you don’t transfer money from your savings account to checking more than 6 times per month or exceed the deposit limits that some banks impose. However, savings accounts typically offer the least amount of interest on the money you already have.



 CDs, or Certificates of Deposit, are essentially long term savings accounts that can earn you interest rates that range from 1-2.6% APY. Unlike a run of the mill savings account, however, some CDs require a minimum deposit before you can put your money in those funds, which could be as much as $2,000. That being said, there are still plenty of competitive CDs out there that do not require a minimum deposit.


CDs are also less liquid than a savings account. When you put your money in a CD, you need to go in with the understanding that you cannot access or withdraw those funds for the next few months to as much as several years unless you want to incur a fee.



On one hand, stocks are more of a risk with your money—unlike a savings account or CD, there is a chance that if the market is down, your investment could potentially be worth less than what you original invested into it at any given time. However, stocks are the quickest and smartest way to grow the money you have in your account.


Where a savings account and even a CD might be unable to keep up with the current inflation rate, the stocks you invest in ride along with the market—so as long as the economy is doing well, you are making more money off of the success of millions of hard workers like you. Stocks also offer more liquidity than a CD, so you can withdraw the money at any time. Keep in mind, however, that you will have to pay taxes on whatever amount of money your stock has grown by once you’re ready to withdraw your funds. Even so, it is the best way to dramatically increase your wealth over time.


Make your money work harder for you by investing it somewhere you know you’ll see results.