Non-Traditional Savings Accounts to Earn You More
There are many options for non-traditional savings accounts that offer higher interest rates than regular savings accounts. We want our customers to be fully aware of the high-yield savings alternatives available, including what they offer, their requirements, and restrictions.
It’s easy to see why people are considering various alternatives to savings accounts. The Federal Deposit Insurance Corporation (FDIC) reports that the
average national deposit rate on a traditional savings account was 0.38% as of July 21, 2025, while the interest on money market and other savings account options was considerably higher. The best non-traditional savings accounts offer you a chance to grow your money much faster than you would with a traditional savings account. They could be an essential part of your
long-term savings plan, although each has its own risks and limitations.
High-Yield Savings Accounts
A high-yield savings account is more restrictive than a traditional savings account but also offers much higher interest rates. Many high-yield savings accounts don’t require a minimum deposit to open an account. They usually have a minimum monthly balance requirement, with a monthly maintenance fee if your balance falls below a certain level.
Federal law restricts high-yield savings account holders from making more than six withdrawals per month, although your bank could have tighter restrictions than that. You also can’t link a debit card to a high-yield savings account or use it to issue checks. The only way to access your funds would be to request a check from your bank, which may take a few business days.
Money Market Accounts (MMAs)
A Money Market Account (MMA) offers a higher interest rate than a regular savings account, while also allowing you to access your funds whenever you need. They usually have a minimum opening balance requirement and a monthly balance requirement to avoid service fees. One of the key benefits of MMAs is that you can link them to an ATM card and write checks from your MMA, just like a checking account. They usually have tiered interest rates, so the more you have in your account, the higher the interest rate you’ll receive.
When considering money market vs traditional savings accounts, the minimum balance requirement on a regular savings account could be much lower (or even zero). With traditional savings, you also have unlimited access. MMAs are more restrictive than regular savings accounts but more flexible than a high-yield savings account.
We offer
three types of money market accounts, each with tiered interest rates, free online and mobile banking, an ATM card, and checks. You can make up to six preauthorized or electronic withdrawals per month, but you can make as many deposits and in-person withdrawals as you like.
Certificates of Deposit (CDs)
With a certificate of deposit (CD), you can earn a much higher interest rate than you would receive from a traditional savings account. Another benefit to CDs is that they can be insured beyond the $250,000 limit guaranteed by the FDIC through various methods such as the Certificate of Deposit Account Registry service (CDARs).CDARs spreads your deposits across multiple financial institutions to achieve full FDIC coverage while you maintain the same level of access to them through your one single bank.
CDs
are available at terms ranging from a few months to a few years, and generally have higher interest rates for longer terms. When a CD comes to maturity, you have the option of withdrawing your funds or reinvesting them in another CD. The main downside to CDs is that you will lose access to your funds for a while, and you would pay a penalty for withdrawing them before the term date. Many people invest in a CD with a particular goal in mind, such as saving up for a major purchase or a vacation.
An effective financial strategy used by savvy savers is what’s known as
CD laddering, where they put their savings into CDs with different term lengths. This way, part of their funds would be available to them at various times. When one CD comes to term, they either withdraw the funds or reinvest them into another CD.
Health Savings Accounts (HSA)
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health savings account (HSA) is a tax-advantaged savings and investment plan for medical expenses. Your contributions can be tax deductible given certain limits. In some cases, your employer can make contributions to them on your behalf.. To qualify, you must be part of an HSA-eligible health plan with a high deductible. There are many advantages to HSA accounts:
- HSAs are portable, which means your account stays with you even if you change jobs, change healthcare plans, or retire.
- Your funds can be invested, similar to a 401(k) plan.
- Your contributions are usually tax-deductible, your withdrawals for qualified medical expenses are tax-free, and after age 65, you can use them to help pay some types of health insurance premiums.
- You would receive a debit card that’s linked to your HSA, making it easy to use it to pay your medical expenses.
A College Savings Plan
The price of attending college is expensive, and the sooner you start saving, the longer you have to watch your funds grow from compound interest. The most popular vehicle for college savings is a
529 savings plan. You can choose how your funds are invested, and your 529 contributions are tax-deductible.
As of 2024, Wisconsin residents can deduct up to $5,000 of their 529 contributions from their state income taxes. Illinois residents can deduct up to $10,000.
All interest earnings are tax-free as long as the proceeds are used for qualifying education expenses. For college and graduate school, this includes tuition, fees, books, supplies, room and board, and approved study equipment for a full-time student at an accredited institution.
529 accounts can also be used for qualified education expenses at the elementary level through high school. Anyone can contribute to the plan, such as friends and relatives. Recent changes in law have even further expanded the types of expenses these accounts can be used for.
Savings Club Accounts
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Savings Club Account is a great way to save up for a particular event, such as a vacation, a wedding, a major purchase, or to cover your holiday expenses. Every time your paycheck is deposited into your checking or savings account, part of each paycheck is automatically deposited into your savings club account and earns interest. With our
Four Seasons Savings Club, you can make unlimited deposits throughout the year and choose an annual disbursement date that fits your goals.
Prize Linked Savings Accounts
Prize-linked savings accounts give their account holders the chance to win prizes through raffle drawings. Entries are typically based on how much you deposit, such as receiving one entry or ticket for every $25 you deposit into your prize-linked savings account, with drawings held monthly or quarterly.
They’re currently legal in more than 30 states.
The upside to a prize-linked savings account is that it encourages people to save, and even if you don’t win, you could still gain by earning interest on your savings. The biggest downside to these accounts is that they pay little to no interest. You have many other savings account options where you would earn a much higher interest rate, and the odds of winning a prize are not something you can rely on.
Investment Accounts
An investment account, also known as a brokerage account or a securities account, covers a wide range of investments and can be used to buy and sell securities such as stocks, bonds, and index funds. An investment account could be self-managed or under the control of an investment advisor. Because these accounts are outside of the traditional banking system, they are not insured by the FDIC.
Investment accounts also include retirement plans such as individual retirement accounts (IRAs) and 401(k)s. These accounts allow the investor to select from a wide range of investment products and risk levels. In an IRA, these options are almost limitless. In an employer-sponsored account, like a 401(k), there are usually somewhere around 40 investment options to choose from.
Brokerage accounts that aren’t specific to retirement are referred to as non-qualified accounts. Non-qualified brokerage accounts have the almost limitless selection of investment options that IRA’s do, but IRA’s have some tax advantages, whereas non-qualified accounts do not.
Anytime you buy stocks, bonds, mutual funds, or index funds, there is the risk of loss of principal and careful attention should be paid to a person’s risk tolerance and time horizon.
Treasury Bills, Notes, and Bonds
While typically offering lower returns than stocks, treasury bills are often favored by those looking for a more conservative investment with less risk, such as those approaching retirement. Treasuries are backed by the federal government and tend to do well when there’s turmoil in the stock market.
Treasury bills have maturities ranging from four weeks to one year. Unlike Treasury notes and bonds, they don’t make regular interest payments. Instead, the interest you earn is the difference between the purchase price and the amount you receive at maturity.
Treasury notes fill the gap between short-term bills and long-term bonds, making them a popular choice for investors who don’t want to lock in their money for decades. They have maturities of 2, 3, 5, 7, or 10 years and, like Treasury bonds, have terms of 20 or 30 years, pay interest every six months until maturity.
The interest rate on all treasuries are fixed when they’re issued. The upside is that if interest rates fall, the interest on treasury bills, notes, and bonds remains the same. Of course, the downside is that if interest rates rise, the interest rate on the treasuries you already own would not change.
Check out All Our Savings Account Options
We offer a variety of
savings account options, so you’re bound to find one that fits your needs. To discuss what each one has to offer, please
contact us or visit any of our
convenient locations in Beloit, Clinton, Delavan, Darien, Walworth, Janesville, and Monroe, WI, and Winnebago, Roscoe, and Rockton, IL.
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Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Investments are:
- Not FDIC/NCUSIF insured
- May lose value
- Not financial institution guaranteed
- Not a deposit
- Not insured by any federal government agency
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