What type of account should I use for a long term savings account?

I want to set aside $350 a month untouched for a minimum of 14 months but if all goes well possibly even 62 months I already have an emergency fund set up so if something happens I shouldn't need this account just wondering what is the best type of accout to make the most interest off of if I will be putting another 350 every month?


I don't know much about the difference between regular savings accounts, MMA, or even CD's or Savings Bonds.|||a regular savings account doesn't earn int, an MMA can be either a checking or savings account that does earn int, and sometimes starts off at .00325 per month, then drops down to .001 after 3 months. and at most physical banks like a local one, u have to open it with a minimum of 5K. --but that doesn't mean u can't start off with a regular savings account and change up or an online MMA. with cd's u basically loan the bank a specific amount over 6 mos, 1 yr or 4yrs with a set int rate. if you withdraw ur cd early u'll b hit w/penalties. but with an mma u can withdraw and deposit any amount u like, and what u earn depends on how restrained u r. savings bonds are pretty much like cd's, except they're over a longer period of time and basically, the longer it is, the less it's worth because the cost of living goes up every year. some say bonds are the safest and the int rate is usually higher. i would go with a MMA, which i've had before, and u can watch ur int grow, the downside is, for most u hav 2 maintain a minimum balance, usually the opening amount. the upside is, that int gets compounded and in most cases, the rate you earn goes up when you hit milestones like, 10K, 20K and so on. u just hav to remember 2 get the rate changed up. know .00325 doesn't sound like much, but 5k x .00325 is about $16, and that's monthly, and more than what you started off with. hope this helps








http://pinchallthosepennies.blogspot.com|||Try a Money Market account.