If you are not so good at saving money for buying something big and investing it smart, but instead you spend it on all kind of things that you do not even need. Then the thing you should do is surely open a savings account. Other from being a great way to save your money, it could be a great gift for someone you really care about. Birthday gift to your kid might be the best solution and it will also save you the trouble of choosing and buying every next birthday present, just put more money in their bank account and they will be content if not delighted. Besides by opening your children’s saving account, you can ensure their future and save money for their college tuition, or for starting business of their own.
Things that you should pay attention
When choosing for savings account, you have to plan it all upfront, how much money do you want to stock on your savings account, do you want access to your account in every second or you want to lock it, do you want to manage your account via Internet or by visiting a bank. If you already decided to open your account and which type do you need, here are a few things that you should pay attention to:
Read the small print at the end of your contract before you sign it, just to make sure there are not some tricks, that will make you lose all your interest when keeping your money in a bank. This applies for everything hereinafter.
Pick an account with easy access
Easy access means that you will be able to access your account every time you need it. However, if you see ‘easy access’ written in big font, do not fall under its spell, before reading the small fonts. Often the easy access can be limited by the number of times you are allowed to withdraw your money. If you are saving your money for so called rainy days, you might not want this, or be sure the number of withdrawal possibilities are enough for you.
If you really want to earn some money by saving it in a bank, and it is the only purpose you opened your account, then the right choice for you may be the notice account. Assuming that you won’t have to withdraw your money immediately. Notice type account means that you will have to notice the bank that you will need to make a withdrawal in advance. How many days upfront will you have to notice your bank, varies from bank to bank, but it is usually thirty, sixty or hundred and twenty days in advance. These Notice accounts give you the possibility of higher returns than an easy access and instant access ones.
The difference between these two types of saving accounts are narrowing in the recent times, which means that it is not so big a difference which type of account you will chose. However, we hope that this article helped you to make up your mind about saving accounts.