Types of Savings Account

3 Types of Saving Accounts

1. Emergency Account

2. Retirement Account

3. Health Saving Account

What is an Emergency Account

• a separate savings or bank account used to cover or offset the expense of an unforeseen situation

• protects you from financial shocks such as major injuries, long-term illness, job loss, and unforeseen home or car repairs. 

Places to keep your Emergency Account 

• High-yield bank accounts

• Money market accounts 

• Certificates of deposit (CDs)

• Roth IRA

What is a Retirement Account

•  refers to financial strategies of saving, investment, and the distribution of money 

Types of Retirement Accounts

• Defined contribution plans

• IRA plans

• 401(k) plans

• Traditional pensions

• Guaranteed Income Annuities (GIAs)

• The Federal Thrift Savings Plan

• Cash-balance plans

• Cash-value life insurance plan

• Non qualified Deferred Compensation plans (NQDC)

• Profit-Sharing

What is a Health Savings Account (HSA)

•  a tax-advantaged medical savings account

How HSA works

• Low premiums

• Funds don’t expire

• Covers premium payments

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