What actually is a savings account?
It is a bank account in a bank or a financial institution, where if one deposits money, it bears interest and at the same time the bank or the financial institution provides a modest interest rate on the money that is deposited over time. The banks or the financial institutions in which your savings bank account is might voluntarily limit the number of times you can actually do a transaction on your bank account and this might be a regular feature each month and at the same time they have every right to even levy fees if the required amount of minimum balance is not maintained in the bank account.
Let’s get to the brass tacks of a savings account.
In sharp contrast with a savings bank account a checking account will allow you to write cheques and one could also use the electronic debit card to access your money and the best part is checking accounts don’t really have limits to the number of times of the transaction that one makes every month. Savings bank account is generally for saving the money and those us why one doesn’t really use them on a day to day basis.
What are the benefits of savings bank account?
One of the main benefits of a savings account is that the savings bank account pays interest and therefore in the long run the money that is put in the account will get you some extra money by just lying in the cabinet. Along with facilitating savings, a savings bank account it is also very easy to access your money through it
What are the disadvantages of a savings bank account?
The liquidity of the savings bank accounts is one of the main advantages of a savings account, however it is this very feature that makes money in the savings bank accounts very readily available and that is also a reason behind the temptation to spend them and the interest that they pay are not too much they pay a very nominal rate of interest.
How does the savings account work?
In order to get a savings bank account for yourself, you have to visit your nearest bank and at the same tie you can also set up a bank account online on the bank website. In order to make deposits you have to visit the bank in person and you could set up automatic transfers from your checking account or you could also have the option of getting a portion of your salary deposited into your savings bank account. In order to withdraw cash you have to either visit the bank branch or use an ATM.