FinancialPlanningAdvices.com » How to Save Money Advices » Bank Savings Accounts Overview

Bank Savings Accounts Overview

Bank savings accounts are considered as a good parking place for the money you can save every month. This article provides an overview of the basics of bank savings accounts, which will help you to determine whether this type of account will be suitable for you.

Bank Savings Account Basics

Bank savings accounts are designed for the purpose of holding money you will not need immediate access to. The interest rate paid on the money deposited in a savings account is higher than the one coming from a checking account.

Liquidity

One of the major characteristics of bank savings accounts is that they provide you with easy access to the money you have deposited. Thus, liquidity is typical for this type of accounts. You can easily and quickly access the deposited funds. However, this liquidity is lower as compared to the one found in checking accounts (you cannot write a check to withdraw money from your bank savings account).

Interest

Another basic characteristic of bank savings accounts is that they accumulate interest on the deposited money. In other words, the bank pays you for parking your money with them. So, if you don't plan to use the money for something else, it is recommendable that you place them in a savings account, because at least you will generate a level of earnings. And as previously mentioned, the interest you get is higher than the one from a checking account.

Safety

Bank savings accounts are preferred by users, because of their high level of safety. By placing the money that is not going to be used for the following several months in a savings account you transfer the responsibility of the safety of the money to the banking institution. As a bonus, you will be able to earn interest on the money you deposit.

Before you decide which particular bank savings account to use, make a careful research and compare different offers in order to find the best bank savings account terms for your needs.

Rate this article : Low
  • Currently 2.8/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
High