Regular savings accounts

These are usually attached to checking accounts through banks and credit unions. They may offer very small interest rates, but many offer none at all. Your money sits there, but is available to you any time. You can add money and take money out freely, the only difference from your checking is that you can't write a check to get the money out.

Money market savings

These are usually offered through your bank or credit union. They are part of your account, just like your checking and regular savings, but this account has a higher yield when it comes to interest. They are designed to give you a better interest rate for the more money you have in the account.

They usually come with restrictions on how much you can take out at once and over the course of a certain time. They may also have a limit as to how much can go in. If you want to let the money grow for a while before you are going to need it, a while means a few months to a year, then this account would be great for you.

Certificates of Deposit

Also known as CD's, these accounts have many more restrictions than the first two. They are usually set up with a predetermined date at which the money will be accessible. This means that you can deposit money at any time (on most CD's) but that you cannot get to the money until the predetermined time is up.

Many are set up to be available after 6 months, 1 year, 5 or even 10 years. The time can also sometimes be time you set. The interest rates on these accounts are usually very good. They are great for making sure that the money you are saving stays as savings.

Mutual Funds

A low-risk and low cost investment done by a hired professional is a mutual fund. The money you put in has the potential to grow, and a very low potential of you losing money. This can be used as savings, it is money that is typically out of sight out of mind. The interest will vary, it isn't set and the money is considered an investment. This is a great way to invest for those who don't know a lot about investing but want to get their feet wet.

IRA's

Well, the R in IRA stands for retirement. So these savings accounts are set up for your retirement. The money is put away and added to until you are ready to retire. There are penalties for taking money out of these accounts before you are to retirement age, so the money should be left alone. The interest rates are usually pretty good, but there will be taxes assessed when you do start using the money. This is an account that should be set up with your accountant or with the aid of another professional.

There are many other savings options to look into such as annuities and savings bonds. Before you put your money anywhere you need to make sure you know what is going to happen to your money. Make sure that you aren't putting so much away into inaccessible accounts that you don't have enough to live on.