Are you a saver or a spender?

A penny saved is a penny earned.

This old saying calls attention to the wisdom of saving money.

Putting money away for a rainy day is another way to talk about saving for the future. In the United States, people who want to start a savings account have different choices of where to put their money.

These include banks and credit unions.

Credit unions are cooperatives for individuals who often share a work-related connection.

For example, the members might work for a university or a government agency.

Most credit unions are non-profit organizations. Credit unions, banks, and other financial institutions pay interest on savings accounts, but the interest rates are generally low.

Certificates of deposit pay higher returns.

With a certificate of deposit, or CD, a person agrees not to withdraw the money for a period of time.

This term could be anywhere from a few months to several years.

Longer terms and larger amounts pay higher interest.

People have to pay a small fine to withdraw their money early. Another way to save is through a money market fund.

This is a kind of mutual fund.

Mutual funds invest money from many people.

The money is sometimes placed in short-term government securities.

Money market funds, however, may not be federally guaranteed like other kinds of savings.

The Federal Deposit Insurance Corporation guarantees savings up to $250,000. For VOA Learning English, I'm Jonathan Evans.