Knowing the Different Kinds of Savings Accounts

Savings has always been a taboo for those who think that they are not moneyed enough to afford a bank account. Little did they know that savings is one way for them to get out of debt miseries. The bank account is not for sale. It is an opportunity for anyone to open a relief for financial misery.

There are many types of savings accounts which a depositor could opt for. Depending on your needs, you can choose among various types of deposit accounts including checking accounts, savings account, time deposit and money market deposit account. Moreover, the savings account framework has many different types like the no notice or the easy access account, notice accounts, the terms or bonds accounts regular savings accounts and the tax-free or the ISA.

The instant access savings offer an access to your money without the need to ask for permission or to provide notice at the cause of paying a penalty or having your interest forfeited. This kind of account is very ideal to those who are thinking of saving their money but who are also prone to accessing it at a very short notice. People get interested with this kind of savings because they offer slightly lower interest rates than any other kind in this genre.

Saving your money is indeed a way to make it secure and ensure its safety. If you really want to save and secure hard earned cash and wouldn’t need it at a shorter period of time, then you can opt for term accounts. Here, your money is bound to be kept for a longer duration, interest is competitively high and accounts are bound to maturity dates. The interest is the same from the moment you open until the time that the term ends.

In this kind of savings account, your money is tied with the bank for a specific length of time which usually ranges from 1 to 5 years. Depositors are not allowed to access the accounts within the periods and could not add further funds to the initial deposit. The bond would have the same initial amount plus interest rates earned at the end of the term.

In the event that you have no enough amounts to settle for the term account because you need your money to be withdrawn and deposited every month and your financial activities require you access on a monthly basis, then you should be able to know the intricacies of the regular savings account. Here, depositors are allowed to commit regular savings with interest as long as they are able to complete a certain number of deposits each year in order to maintain or prevent it from earning the interest.

Some banks are generous enough to provide annual bonuses to those who adhere to the withdrawal and deposit requirements of the regular savings accounts. This means that an annual bonus is paid on top of the interest rate. However, if the depositor fails to keep up with this requirement, then some banks reserve the rights to take off the annual bonus.

If you are the kind of person who thinks that money should be accessed all the time, the regular savings accounts may not be very fit for you because some policies may include the inclusion of withdrawal limits and amount to be withdrawn each month. This could be a disadvantage for those who want to make several deposits in varying amounts anytime.

Finally, the Individual Savings Account was formulated for those who can afford to save in cash or invest in the equity ISA or even a combined chance for both. The returns which you can gain from this account are totally income tax and capital gains tax free.

You may choose any of the following types of savings accounts. Whatever your preference maybe, at the end of the day, it will only be you who can realize the benefits one can earn from saving for the rainy days.