Savings Accounts Definition

23
Oct

Savings accounts are a good way to stave off financial hardship during times of emergencies. With savings accounts – unlike checking accounts which can and most often attract charges – banks pay you for keeping your money with them. This is called the savings account interest rates. This form of interest which varies from bank to bank. It aslo depends on which type of savings account.

Different Categories Of Savings Accounts

Broadly speaking savings accounts fall into 2 different categories. They are either

Long term - With long-term savings account, you sign an agreement not to withdraw your money for a certain period of time. This attracts higher interest.
Short term - For short-term or ordinary savings accounts you can withdraw your money anytime. Interest is calculated on the balance either daily, monthly or annually.

Some banks have a minimum balance requirement so although you can withdraw money there must be a minimum balance available in order for the account to operate.

Also most, if not all savings accounts are insured up to $100,000.00 which is a great way to safeguard your money.

Different Types Of Savings Accounts

High yield savings accounts / High interest savings accounts
Business savings accounts
Money market savings accounts

Category : Online Banking