Types Of Savings Accounts

There are many types of Savings accounts and they are generally opened for salaried personals who have a regular fixed income to earn interest on their money. Savings accounts are also used by students, senior citizens to encourage a habit of savings.

Few Reasons for Opening Savings Accounts

1. A savings account is a great tool to encourage savings habit among salary earners, students, senior citizens, individuals with a fixed income and even children.
2. You benefit from earning income by the saving bank interest.
3. A bank account allows depositors to make payments by issuing cheques.
4. The account shows and stores a record of the income earned by the account holder during the year.
5. You can use the savings account statement as an identity and residential address proof.
6. By owning a savings account you get a variety of services including ease of getting a loan if you already have an account with the bank.
7. The account gives immediate access to the account holders money with the help of an ATM.
8. The account keeps track of all the online transactions you make.
9. With a savings account you have access to internet banking and online shopping as well as banking Apps for your smartphone.
10. You can use a Savings account to make electronic fund transfers to another account.

Peoples reasoning for opening a savings account might vary. But no matter why you decide to save your money, choosing to open this type of account is much better and safer that storing your money under your mattress plus it will earn interest. By owning a account you are also doing a little bit of investing. The interest which is given on saving accounts is sometimes attractive though often nominal. At present, the rate of interest ranges between 4% to 6% per annum. For the most part, you won’t earn a lot of extra money, but your investment is safe, and you can get to your money quickly and easily.

Summary

Article Name

Types Of Savings Accounts

Description

There are many types of Savings accounts and they are generally opened for salaried personals who have a regular fixed income to earn interest on their money. Savings accounts are also used by students, senior citizens to encourage a habit of savings.

Author

Giovanni

Publisher Name

Likemoney.co.za

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