A saving account is opened by an individual and is maintained by the credit unions, banks, as well as other financial organizations. These accounts reimburse interests on the money which is deposited into the account. But, the capital is held into the savings accounts and can't be spent openly like writing a check.
Savings accounts mainly focus at permitting the account holders setting aside one portion of liquid assets like a fraction of the savings approach. Those savings accounts which offer better rate of interests to the account owners are preferred, since they allow the savings to accumulate quicker. Therefore, people should compare the rate of interests that are offered by assorted financial institutions in order to find appropriate savings accounts providing best rates.
The sole objective of establishing savings accounts is to put aside one portion of income which will prove handy at the time of emergencies and retirement. Flourishing savings accounts reflects positively on the credit score of account holders since it establishes their advanced money management expertise.
There are various types of plans in saving accounts out of which one can choose the best one as per the requirement and convenience.
1) Offshore savings account: This type of saving account is available for people who are staying as well as working abroad. Offshore accounts facilitate the account holders in protecting their hard-earned assets and wealth. Also, with this kind of account, account owners can conduct their business activities in private and a confidential manner.
2) Health savings account: Such type of savings accounts is designed in order to help the individuals to make savings for upcoming expenses related to medical expenses without acquiring any taxes. The money can only be accessed for medical reasons. Health savings account also works as a retirement plan where you earning a good amount of interest over the period of time which can be utilized during medical needs.
3) Standard Savings Account: With this kind of savings account, the holder can have access to his/her money as many time as he or she wants. Though with this type of account one gets little amount of interest but it is a good start for those who are searching for the right means to being savings.
However, there are few factors that are necessary to consider while choosing an appropriate savings account that include:
- Interest rate savings accounts:
Rate of interest is the sum-total of interest which the bank pays to an individual on the capital money available for an individual's savings account.
- Minimum balance savings account:
There are few banks that charge fees if an individual goes beneath a specific balance and there are few that will simply lower your rate of interests. So, one can go for saving account with low-minimum balance in order that if one ever requires a large fraction of his/her capital, the person would not be charged any fee.
With the coming up of e-commerce facilities, there are number of banks available online that offer an individual with the lowest minimum capital balance and highest rate of interests savings accounts.
By : James Trend
James is the owner of a finance company and enjoys writing articles on finance in his spare time. More articles on savings accounts here: http://www.squidoo.com/useful-guide-to-savings-account