Everything There Is To Know About a Savings Account

Updated July 23, 2014 ‚óŹ 614 views
Everything There Is To Know About a Savings Account

A savings account is any kind of a deposit account held at a bank or any other financial institution that provides principal financial security, along with a modest interest rate. Depending on the different types of saving accounts, the account holder may not be able to write cheques without extra fees being charged and the account is likely to be limited to a certain number of transactions.

The funds of a savings account are considered to be liquid investments. This type of account is generally used to save money that you don’t plan to use on daily basis, or for regular expenses. To open such an account is really simple, all you need to do is simply go down to your local bank with the proper documentation and ask to open a savings account. In contrast to savings account, there are other accounts known as checking accounts. These allow you to write cheques and use an electronic debit card to access the funds of your account.

Banks tend to offer a certain amount of interest for a particular period of time, mostly annually. Different banks tend to give different interest rates on the funds that you hold in your savings account.  The interest rates tend to be around 5% p.a. to around 9% p.a. Make sure that you open an account with the bank that provides you with the best savings account interest rates.

Their main advantages of having a savings account are the features of liquidity and superior rates that they offer as compared to the common checking accounts. Most of the new day savings accounts offer you access to your funds easily. All you need to do is visit a local branch, or access your funds through the automated teller machines (ATMs). With the new age technologies, now you can even access your funds and banking details over the internet, or even on your mobile phones.


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