Do you have some extra money kept in your wardrobe, save every month and keep it away at home? Well, if you are already saving why don’t save in a savings account and enjoy the interest earning?
Saving is a very common practice and people irrespective of their age and genders tend to save, no matter you are working or not you will have a habit of saving because this is something which is already in the nature of every person. Some people have monthly savings, some people save on occasions and some people save weekly, it depends upon the salary, pocket money and expenses a person has to incur. However, no matter how much you are saving or for which purpose you are saving you must always take initiatives to grow that savings and for this nothing could be as good as a savings account.
Features of a Savings Account (i)
Almost every bank offers the choice of savings accounts for its clients and every savings account has its own features which differentiate it from the regular checking account and a few such features which you must be aware of beforehand may comprise of the following:
Earning Via Interest Rate
Savings accounts interest rate is the key to keep an eye on, it is the interest rate which is your actual earning on the money you have kept in the account and this is what that differs from the usual checking account there is no interest earning in that kind of account however other than the base rate of interest in savings accounts there are two other kinds of interest rates as well:
- One is the bonus interest rate which is the rate of interest other than your base rate offered on your savings which is because you have fulfilled a condition given by the bank, this may comprise of minimum number of withdrawals or maintaining a given balance for sometime etc.
- Promotional interest is also one of the interest rate which is earned usually by new account holders, this is something which is enjoyed for a limited time period and then expires it could be a token of appreciation because you have convinced yourself to open a savings account.
Maintaining and Depositing Minimum Balance
Every financial institution has its own set of rules but the basic determiners may comprise of this feature as a must that you have to deposit a particular amount to have a savings account and then throughout you have to maintain a particular amount of balance as well so that bank also has its security. Therefore when planning to get yourself a savings account opened up make sure to know that whether you have that minimum required savings or not and then opt for the account opening.
Many banks require the account holders for savings account to fulfill a certain eligibility criteria before the account has been opened up. There could be age limits as well and some children might have to take their parents reference to get a savings account, this way the account is opened by the parents on behalf of their children.
Fee Associated with Savings Account
Many savings accounts have been associated with the regular fee payments which are the service charges and even at the time of opening these accounts some fee is deducted. However a lot of high yield interest savings account offers no monthly fee savings account option maybe because they have a high minimum balance requirement.
Value Adding Facilities
Banks do all possible efforts they could by offering their account holders with numerous facilities. The savings accounts also offer the direct deposits, automatic payment scheduling, debit and credit cards and even ATM cards as well which all in all offer a lot of ease to the account holders.
Kinds of Savings Accounts (ii)
Knowing about the different savings account options is something very important and must be considered before you get yourself a savings account opened up so that you can decide which choice you might want to make for yourself.
Choosing Remote Savings Accounts
Many online banking institutions have now came into being and are offering online savings account options to the users. These accounts are based on the portal of online banks where, the number of staff is limited and also the expenses are less unlike a conventional baking system hence they offer an impressive interest rate which tempts many people but make sure to scrutinize the service providers before handing them your money.
Conventional Savings Accounts
These accounts are opened up with your bank which may be near you and has a built-in reputation, they offer the savings service by offering an interest rate and you are at a liberty to withdraw your money whenever you want at any time. These are the most commonly used accounts by a lot of people and are considered to be pretty much safer.
A lot of people rather than keeping their money in accounts prefer buying the savings certificates out of them, this approach is also very common but there is no feasibility of withdrawal with such setups. You have to wait and request an application whenever you wish to liquidity these certificates to gain back your money. However, these are one of the highest interests paying option when it comes to looking forward to saving options around you.
The approach of saving is always one of the most commendable approaches but which option to choose, how to save and which bank to select is a decision which everyone must take by exercising their own diligence and doing homework by assessing the services and the reputation of different financial institutions. These days people are getting more and more savings account to open up because these accounts have numerous benefits attached to them and also the money tends to grow, when kept at home it will not grow and will be the same even after years and years so it is always better to take it to a savings account instead.