All About Savings Accounts

James Little

Types of Savings Accounts

There are five different types of savings accounts, these are regular, automatic, online, money market deposit, and certificates of deposit accounts. It doesn't matter which one you choose. Different people have different techniques they use to save money so one may work for you and the others might not. The regular savings account is one offered at every bank. You can sign up for this accounts either online or in person. This account is also easy to set up and maintain.


An online savings account is one only available from the internet. An online savings account does pay higher interest rates, although it might take longer to access your money. Another great thing about online accounts is that you don't get a minimum monthly maintenance fee, daily balance requirement, and deposit to open an account. Money Market Deposit Accounts will usually have higher minimum balance requirement that are between $100 and $2,500. You will also get monthly fees and check-writing privileges. Their fees are higher than regular but less than online. Finally they also require a certain amount of money be withdrawn per month.


When you open a Certificates of Deposit bank account they will give you a maturity date. A maturity date is a fixed interest rate that can be issued by any denomination. This can last from 1 month to 5 years. The one downside to this account is if you take out money before it matures they will give you a fee. Lastly an Automatic Savings account is one that transfers a certain amount of money into your account once a month. This account is useful to someone that forgets to set money aside when saving money for something.


In conclusion there are five different saving accounts which are Regular, Online, Money Market Deposit, Certificate of Deposit, and Automatic Savings accounts. None of these accounts really has an advantage over the others, they all have great advantages and disappointing disadvantages. The easiest way to find out which is best for you is to analyze your values and see what you truly need. For example if you're bad at remembering to put money into your account each month, it would be best to get an Automatic savings account. If you are looking for a way to save money for a short term goal it would probably be best to open a Regular savings account.

Responsiblities

It is also important to remember that not everything is secure when you create a savings account. All five accounts are not completely secure from people that want your money. The most important thing to do when you create a saving account is to make sure your passwords are in safe place where no one will find them. You should also review your account every day to make sure there are no unauthorized withdrawals or errors. Any withdrawals made that you don't remember may be a sign of someone knowing your password or someone hacking into your account. If you remember these responsibilities your account will remain safe from harm.

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