You may want to put half in an MMA and the rest in CDs, which will earn significantly higher interest, if liquidity is not an issue. Or you may purchase several relatively short-term CDs at weekly or monthly intervals so that each matures on a scheduled basis, providing access to those funds at a comfortable interval. Regardless of which savings method or methods you choose, start by discussing your savings needs with your banker. Your total dollar investment in the bank can open doors to a package of services that is right for you. The table below breaks down the variety of savings vehicles you might want to consider.
Bookkeeping is automatic.
No or low minimum balance required. Money is readily available. Banking may be limited to branch transactions during banking hours. Passbooks can be lost or stolen. Interest rates are low compared to other programs.