Saturday, December 26, 2009

All about savings accounts

The most obvious place to put money that you want quick but not regular access to is a savings account. A regular savings account usually allows you to withdraw money as you need, and only the account holder may make withdrawals from a saving account. However, savings accounts are not the place for long-term savings, because inflation will consume any return that you receive and then some. Savings accounts are recommended for building emergency reserves and saving for short-term needs. They are good places to stash cash you think you will need within a few months.

The balance requirements and interest rates of savings account vary from bank to bank. The amount of interest you earn is a certain percentage of your account balance. Some people choose a bank which offers the highest interest rate, and others prefer those located nearest their home or office for convenience. Banks and savings association offer a variety of savings account. Ask the manager to explain how to open a savings account and how to make deposits.


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