OK, you’re at the bank. You’ll most likely have a choice of accounts. A regular savings account is a good bet. You can deposit or withdraw money at any time. And, you earn a small amount of interest on the account balance. One tip: Keep an eye on the minimum balance you might have to keep to avoid possible fees and to earn interest. Or, scout around and see if you can find a student account with no minimums at all.

You can earn slightly higher interest rates with a money market account (MMA). It can be really useful because it’s part checking, part savings, so you can write a few checks each month. But you’ll be bummed if your account balance falls below the required minimum.  We’re talking big fees, and possibly losing the interest you’d earned.

Bank CDs don’t play music—they’re certificates of deposit. Here’s where bigger interest rates come in. You commit the money for a specific period of time, say, six months or a year. The downside?  If you take it out before the end of the term, you’ll lose some or all of the interest you would’ve earned.