When it comes to saving for the future, there are more options than ever — and that’s a good thing. But with so many choices, it can be hard to know which account is right for your needs. At Midwest Bank, we believe the best financial decisions start with clear, honest information.
Here’s a quick guide to help you understand the differences between a Certificate of Deposit (CD), Health Savings Account (HSA), Individual Retirement Account (IRA), and Money Market Account, so you can choose the savings option that works for you.
1. Certificate of Deposit (CD)
A CD is a type of savings account that offers a fixed interest rate for a set period of time, known as the term.
Key Features:
- Guaranteed rate of return
- Terms typically range from a few months to several years
- Early withdrawal penalties apply
Best for:
People who want a safe, predictable way to grow their savings and don’t need immediate access to their money.
Explore Midwest Bank’s CD options to see current rates and terms.
2. Health Savings Account (HSA)
An HSA is a tax-advantaged savings account designed to help you pay for qualified medical expenses. You must be enrolled in a High Deductible Health Plan (HDHP) to open one.
Key Features:
- Contributions are tax-deductible
- Funds grow tax-free
- Withdrawals for qualified medical expenses are tax-free
- Unused funds roll over year to year
Best for:
Individuals or families with an HDHP who want to save for healthcare expenses — both now and in the future.
Learn more about HSAs through Midwest Bank.
3. Individual Retirement Account (IRA)
An IRA is a tax-advantaged account designed to help you save for retirement. There are different types of IRAs, but the most common are Traditional and Roth IRAs.
Key Features:
- Contributions may be tax-deductible (Traditional IRA)
- Potential for tax-free growth (Roth IRA)
- Penalties apply for early withdrawals (before age 59½)
- Designed for long-term retirement savings
Best for:
Anyone looking to build retirement savings with potential tax benefits.
Explore your IRA options with Midwest Bank.
4. Money Market Account
A Money Market Account combines features of a savings account and a checking account, often offering higher interest rates with easy access to funds.
Key Features:
- Earns competitive interest rates
- Limited check-writing privileges
- Higher minimum balance requirements than standard savings accounts
Best for:
People who want to grow their savings while maintaining access to their money when needed.
Compare Money Market Accounts at Midwest Bank to see if it’s right for you.
Which Account Is Right for You?
Choosing the right savings option depends on your financial goals. Whether you’re planning for a big purchase, saving for healthcare, preparing for retirement, or simply building a safety net, Midwest Bank has solutions to help.
Still have questions? We’re here to help.
Contact us or stop by your nearest Midwest Bank location — our team is happy to walk you through your options.