The average interest on a bank savings account—0.30 percent—might make you pine for higher dividends, but what you earn on your emergency savings isn't half as important as knowing it's safe and sound. Here's how to reap the best return and preserve your peace of mind:
Stick with a Federally Insured Bank or Credit Union
In the rare event something dire happens, federal insurance will reimburse you (up to $250,000 per person, per bank). At the bank, look for the FDIC logo; at the credit union, make sure there's an NCUA insignia.
Consider a Money Market Deposit Account (MMDA)
You may be able to earn a little more interest than you would with traditional savings: The average yield on a $50,000 MMDA is currently 0.96 percent.
Look into Bank and Credit Union Certificates of Deposit
The yield on a CD depends on its duration and the amount you deposit; the longer the term, the higher your interest rate. You're able to get your money out of a CD at any point, but you may have to forfeit some of the interest you've earned.