People move on in life with specific goals in their minds. The time horizon you take to fulfill your goals also makes way to a better understanding of your saving strategies. A good saving strategy includes a better comprehension of the right places for the investment.
Investing your money in a safer place is also crucial for achieving your financial goals. A savings account can be the stepping stone to an individual’s financial journey.
Furthermore, it is one of the safest choices for initial investments. Sometimes, choosing the right bank account for your financial goals can be a daunting task. But, having a good knowledge of these accounts can always do good.
Regular Savings Account – Regular savings account is a simple bank account, which allows you to deposit and withdraw money, all while earning a little interest. Additionally, savings accounts offer most of their facility free without many ample charges.
The interest rate that most banks bestow on the savings account could range anywhere up to 6~7%. You will also get access to the debit card, online banking, passbook, e-statements, etc., which can be helpful for you in managing your funds. However, there might be limits on cash withdrawals or fund transaction per day. This may vary from lender to lender.
High Yield Accounts – As the name indicates, high yield accounts offer higher interest rates on your savings than other types of savings account. Typically, the banks require you to deposit more to earn more interest in these types of accounts.
In most cases, the savings account which provides higher interest rates is used by the people with long term financial planning. Most of the banks allow this type of account for their existing customers with a good credit history.
Linked Savings Account – If you are among those people who wants to connect all your bank accounts, linking account make for a good option. Linking account is a variation of regular savings account. However, you can connect this account to other bank accounts you hold such as your checking account. By opting for this, it will be easier for you to transfer funds between various accounts.
Women’s Savings Account – Majority of financial institutions offer special privileges for their women customers. One such privilege is women’s savings account, which is specially designed for women to enhance their financial freedom.
This type of savings bank account can only be opened by the women residing in the country. This type of accounts can also offer all other perks of a savings account along with some additional benefits like locker rentals.
With the advent of digital banking, online savings account opening has become more accessible for everyone. Choosing the best savings account for you is entirely a personal decision, which depends on your saving goals. However, knowing the features of various savings bank accounts can help you make a wise decision.