Explore The Entire Potential Of A Savings Account

The saving account is one of the many bank accounts provided by the financial institutes. Through this account, you can invest your funds and earn a good return on investment. Apart from this, there are various other facilities provided by this account. With the right strategy, you can easily make the most of this account to get a good financial return. When you apply for the savings account, you can take advantage of the following features.

Online Vs Regular Savings Account

Keeping in touch with the latest financial trends, banks are now offering different types of account. When you apply for the savings account, you can opt for the regular account or even an online account. There are various differences in this account. The regular savings account is easy to set up and maintain. You can link this type of account to other accounts in the same back and easily transfer funds between the two accounts. Linking these two accounts will also help in avoiding certain charges like the overdraft charges or less than minimum balance. The online saving account can be accessed exclusively over a secure network over the internet. This type of account comes with a high interest rate. Several online banks offer this feature, as it provides a convenience to those who wish to access their funds in the account for savings. You can also make fast transfers in this account. It also has the benefits of greater earning potential without the requirements of minimum deposit to open an account, minimum daily balance requirements, or a monthly maintenance fee.

Certificate Of Deposit

When you apply for the savings account you can opt for the certificate of deposit which is also known as termed deposits. This certificate of deposit is a valid proof, entitling the bearer to receive interest. It is similar to a bond, but instead of paying interest periodically over the tenure of the investment, it will pay interest at the time of maturity. This certificate of deposit bears a maturity date, fixed interest and can be issued in any denomination. The tenure of this deposit can mature anywhere between a month to a couple of years. The interest earned depends on these factors depending on the current market conditions. Withdrawing the funds before the term of maturity will lead to penalty and decrease in the interest rates.

Automatic Savings Plans

Many banks offer automatic savings plans with this saving account. It is a great way to develop a habit of saving your funds. Opting for this plan will ensure that you also pay less banking fees. You can plan this feature by making a joint account wherein, the excessive money in your account can be transferred to another account or deposit. You can use termed deposits like the recurring deposits for such cases.

Neha Sharma is a finance student who loves to write in her free time. She has considerable knowledge about the saving account. She understands the full potential of this account and through her work, has urged us to apply for the savings account along with the right strategy.