What type of savings account is better and how does one differ from each other?

In choosing a Savings account, you need to understand the different types of it as they come in different forms with its own features.  The first type is the Basic Savings Account. This is usually the chief kind banks offer their customers. Clients can deposit cash in their account at a regular basis. Traditionally, banks require fixed amount to be deposited. However, these days, banks are lenient. They allow an amount within a determined range. This account also permits you to do withdrawals with the balance pulling possible interest.

Another is the Money Market Account. This is similar to Regular Savings Account only that it draws a higher interest rate compared to the Basic Savings Account.  Nevertheless, it has many restrictions. It requires a higher minimum balance about $1000 t0 $2500, limit the number of withdrawals from 3 to 6 times in a month, and permits you to write a check 3 times in a month too. The bank provides you with a register book where your starting balance is written and all the succeeding transactions done like incoming deposits and withdrawals. This may give you a footprint on how much cash you entrusted in your account.

High Yield Savings Account is yet another classification under this category. This also is another competitive account as it attracts a higher interest rate. You need to meet one of the requirements though which are the following:

1. Deposit sufficient huge amount at the start
2. Limit deposit and withdrawal transactions each month
3. High balance should be kept over time
4. Other banking relationship should be maintained

 With these requisites, only those valued clients are served this sort. This is a good option to people who have surplus cash to survive and does not need to withdraw from their account on a monthly basis. Instead they will be the ones to enjoy the annual percentage yield (APY).

Lastly is the Online Savings Account. This account calls for a high interest rate too but without so many tough demands like what is required with the High Yield Savings Account. The only deal is the “do it yourself” transaction. This is using the internet by linking when you want to get money from your account and managing the transfer.  Online is a better option to those who do not agree with the many restrictions the bank requires and to those who are comfortable doing web banking.