Types of Savings Accounts

Many banks offer a varieties of various savings options,and mainly three kinds are offered. As we decide that which kind of account we want, we can ask our self how much money we like to save and how do we want to access that money. For that we should do a comparison shopping, paying a attention towards fees and how much interest rates are associated with every account.

Basic or regular savings accounts are mainly known as a common types of savings accounts.this types of savings accounts is simple for use.Basic or regular savings accounts are sometimes also called as 'PASSBOOK ACCOUNT' , with a few amount of money. These passbook account mainly don't require a minimum balance and will give us a facility to access the money easily whereas it may be limited to that how much can we withdraw per month without being charged a fee. This types of savings accounts also offer us a low interest rates, so if we want a higher return on our money we should also investigate another type s of savings accounts.

Money Market Accounts: With a money market account, we will receive as higher interest rate than it would with a basic savings account, but we also have to keep a higher minimum balance (the amount differs from bank to bank). we still have easy access to the funds in our account, though the number of withdrawals we can make will probably be limited. In addition, we may have the ability to write checks, but the number you are allowed to write will also probably be limited and the another types of savings accounts is CD ( certificate of deposit).

Now a days,there are various types of savings which had difficult for us to select. The type of savings accounts which will be good for us is dependent upon various factors - like, do we need instant access to our money, how far we can tie our cash up for and do we pay tax or not.

Mostly savings accounts are of five types:

• It is easy to access
• Notice account is needed
• Bonds or Term Accounts is also important
• Regular Saving Accounts
• IS As and Tax-free accounts

FIRSTLY SAVINGS ACCOUNT CAN BE CATEGORIZED AS:
Instant access or easy access accounts

This type of savings accounts provide us a instant access to our money without giving any notice,financial penalty etc. These types of savings accounts are ideal for those people who wants to save their money but access to the cash at short notice can be needed and because of flexibility of this type of savings accounts the interest rates are lower than other types of savings accounts.No notice accounts can be operated.

It is easy to check our rate at least every three months to make sure that if we are getting the best result on our savings or not.



SECONDLY SAVINGS ACCOUNT CAN BE CATEGORISED AS:
Notice accounts

Notice accounts mostly earn a good rate of interest but few amount is needed to give before drawing funds to avoid the penalty and amount of notice which we need to give depends upon the accounts which we have chosen.

Notice accounts are becoming less attractive whereas,instant access accounts have become more attractive and competitive which allows us to draw our money immediately.