Basics of a euro savings account

Investments have become a major part of ones financial portfolio. It is wise to invest funds into the various investment schemes available. There are a plethora of investment options. Certificates of deposit, savings account, money market accounts etc are some of the popular investment options that investors look to. Each scheme offers various advantages. One has to read the terms and conditions of these investment instruments prior to investing in any one of them.

What is a savings account?

It is one of the most popular and commonly available investment instruments out there. These accounts are available in most banks and financial institutions. It works on a principle where one can invest his money in a federally protected environment for safe keeping. It is often unsafe to store saved money at home. There is always a risk of loosing it to robbery of maybe even a fire. Instead of storing the money at home one can save his money in a savings account maintained by a bank. Money invested also earns an interest. This interest is compounded on your principle amount. It is a safe mode of investment as your money is federally insured by an independent body known as the federal deposit insurance corporation. This body offers an insurance of upto $100,000. Hence even if the bank were to close down one would get bank his savings. This provides a stable and risk free environment for ones savings. The rates of interest earned through a savings account are lower than that earned through certificates of deposits or money market accounts.

What is a Euro savings account?

It is a type of savings account. For those earning in Euros, or for those who own properties in the EU it a wise investment option. If one who is earning in Euros and wants to open a savings account in dollars he would be charged with exchange charges. In this case the Euros savings account makes sense. One would then not have to bother about exchange risks and administration costs. There are different types of Euro savings account that are available. Each one designed to cater to specific needs of a client. The following are the types of Euro savings account

• Treasury deposits
• Liquidity management deposits
• Currency call deposits

Features

The minimum savings required for these accounts range from 500 to 50000 Euros. The most commonly required minimum balance being 5000 Euros. The rates of interest associated with this account may range from 1.22 to 3.5%.