The most common option for savings for the average American is a basic savings account, available at any bank or credit union. Many banks allow these accounts to be easily tied into your checking account, allowing for automated transfers to make saving easy and convenient. When shopping for a savings account, look for the best interest rate you can find. Interest compounded more frequently will provide you with a higher return on your money. The interest paid on a savings account will be lower than that on a less accessible saving option; however, if you need quick access to your money, this can be a worthwhile trade off. Savings accounts typically allow easy access to your money, often via ATM machines. This is a practical, easy, and very functional savings solution.

If you are looking for a relatively short or longer term investment with a higher rate of return, a certificate of deposit, or CD, may be a good savings choice. You can purchase CDs at any bank, and they can be bought quickly and easily. A certificate of deposit is purchased for a set duration, anywhere from three months to five years, and you are guaranteed that interest rate for the duration of the CD. CDs typically earn compound interest, and will pay a higher interest rate than a savings account. If you have successfully saved enough for a CD, and have adequate funds to cover regular living expenses and an emergency fund, CDs may offer you a fine savings solution. There is a penalty for early withdrawal, so certificates of deposit are most suited to situations in which you will not need easy access to your funds. Longer term CDs offer a higher rate of return than shorter duration CDs.

Another alternative easily available at your local bank is a money market account. This type of savings account offers a higher return, has a variable interest rate, and may require a set balance. Unlike a certificate of deposit, while you may be required to maintain a minimum balance, you will likely have access to your account via a bank issued checkbook. This can be an excellent alternative if you have enough savings to qualify, but still need occasional access to your savings to pay for bills, vacations or other expenses.

US bonds are another conveniently available option to save smaller amounts of money. There are two types of US bonds. The first, called EE bonds, are purchased for half the face value of the bond. Each year the interest will grow on the bond, for up to 30 years, even above and beyond its face value. The second type of US bond is an I bond. These are purchased for face value, and earn interest at a variable rate. These bonds are designed for educational savings, and may be cashed into pay for college expenses. US savings bonds are a long term investment, and cannot be cashed in without financial loss prior to maturation.

These savings options are ideal for the average American, providing affordable ways to help your savings earn money. From your bank's basic savings account to CDs and money market accounts, choose the savings options best suited to your financial needs. Check mymoneychoice.com soon for more investment ideas as your savings grow.