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Savings
 

Savings

If you are working toward saving money, one of the savings vehicles you may want to consider is a savings account. Savings accounts usually pay interest (although a relatively small amount) on the account, and your savings is generally protected by FDIC insurance. A savings account is relatively uncomplicated, but there are definitely some things to consider and evaluate before choosing and opening one.

Once you decide upon a bank, you’ll have to determine what kind of savings account you’ll open. A basic savings account offers minimum interest but fewer requirements and restrictions, while money market or high-yield accounts often offer higher interest rates but more restrictions.

After you open your account, remember to start saving. Even if you only have a small amount to contribute each month, even a little money is a great start.

A savings account is one of the simplest types of bank accounts available to consumers. It lets you store cash securely with an insured bank or credit union and earn returns on the balance.

Cash kept in a savings account is a bit less accessible than cash kept in a checking account, which you can generally withdraw without restrictions. For savings accounts, the Federal Reserve limits the number of “convenient” transfers or withdrawals to six a month — but that doesn’t include taking money out through a teller or ATM, for instance.

Most banks and credit unions offer savings accounts as a simple way for consumers to keep their extra funds safe. Credit unions often require a savings account to be opened as a part of the membership process. Savings accounts are considered to be the most straightforward of bank accounts, but they do have a few particular features that you should keep in mind.

•    Transaction Limits – By law, you are permitted 6 withdrawals or outgoing transfers per month from a savings account. If you make more than 6 withdrawals or transfers in a given month, you may incur a fee from your bank or credit union, and continued violations could result in account closure.
•    Variable Rates – Savings account rates are subject to change without notice and can shift daily at the discretion of the bank or credit union. The interest rate you receive when you open the account may not be the same rate a year later.
•    Fees – Some savings accounts carry monthly maintenance or service fees and have minimum balance requirements. Make sure to read your account’s fee schedule before opening.

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate. Depending on the specific type of savings account, the account holder may not be able to write checks from the account (without incurring extra fees or expenses) and the account is likely to have a limited number of free transfers/transactions. Savings account funds are considered one of the most liquid investments outside of demand accounts and cash. In contrast to savings accounts, checking accounts allow you to write checks and use electronic debit to access your funds inside the account. Savings accounts are generally for money that you don't intend to use for daily expenses. To open a savings account, simply go down to your local bank with proper identification and ask to open an account.

Advantages for Opening a Savings Bank Account :-

1.    A savings account encourages savings habit among salary earners as well as the ones who have fixed income.
2.    The depositor earns income by the saving bank interest.
3.    A bank account allows depositors to make payments by issuing cheques.
4.    It shows and keeps a record of the income earned by the account holder during the year.
5.    The account holder can use the saving account passbook / statement as an identity and residential proof.
6.    You can use a Savings account to make electronic fund transfers to another account.
7.    A saving account also allows internet banking and online purchases and shopping.
8.    A savings account keeps a track of all the online transactions of the account holder.
9.    Allows access to immediate access to the account holder’s money with the help of an ATM.
10.    Banks also offers a variety of services to the account holders including ease of getting a loan if you already have an account with the Bank.