A savings account is considered to be a secure place to keep your hard-earned money that you do not intend to spend right away. These accounts are extremely useful when planning your day-to-day needs and emergency funding. When it comes to selecting a savings account, you will come across different options that include:
Traditional Savings Account
People who are looking to save funds either in long-term or short terms are not so focused on getting the best annual percentage yield or interest rate. Traditional savings accounts are the most commonly provided accounts by banks and credit unions. These allow you to earn interest on the money. However, usually, the interest rate is lower as opposed to other savings tools.
Money Market Accounts
MMAs are quite similar to a standard savings account. The primary difference is that it offers easier access to money. You can easily write checks against the banks and even allow them to spend the money through debit cards. Similar to any other savings account, there are certain withdrawal limitations that you need to adhere to. Additionally, in this type of savings account, you get more return on interests.
Salary Account
These are generally opened by banks upon the requirements of companies and corporations. It provides an organized way of distributing salaries to employees. However, the account is handled by the employees themselves, and there is no need to maintain a minimum balance. On the date of salary disbursement, the bank withdraws the money from the account of the company and distributes the amount to the employee’s accounts.
Students Savings Account
Whether it is a standard savings account or premium savings account, you are required to keep a specific balance. If you do not comply with minimum balance requirements by the banks, you will be charged with a penalty. Moreover, there are monthly maintenance fees that the banks charge for different services. But in students’ savings accounts, the banks allow you to keep your account balance zero. And students do have to worry about paying monthly fees as well.
Women’s Savings Account
As the name suggests, this type of savings account offers certain special benefits to women. Along with providing regular benefits of savings accounts, the account holders also get higher interest rates, various product discounts from the bank, etc. However, the bank requires the account holders to maintain a predetermined minimum balance, which varies from one financial institution to another.
Senior Citizen’s Savings Account
The primary objective of this type of savings account is to offer financial security to senior members of society. Generally, these accounts come with no minimum balance requirement and provide higher interest rates. Moreover, senior citizen’s savings accounts are linked to their pension funds as well.
Final Thoughts
Savings accounts are among the most commonly used bank accounts by the people. There are different types of savings accounts that cater to various purposes. When choosing a savings account for yourself, consider all important factors that include interest rate, withdrawal flexibility, and other services provided by the bank.
