Smart savings for future with savings accounts

Savings is always a healthy financial habit. Practicing regular savings can help sail through financial difficulties, without relying upon external loans and money lenders. Earning money while saving it is an option available in banks, known as savings accounts. 

A savings account helps keep away some part of earnings as savings, as the name suggests. Different banks have different rules of operating a savings account. One important advantage of savings account is that, the bank pays a certain amount of money as interest for the amount that is kept in the account. This interest rate depends on the total amount kept in the bank. If there are regular deposits made to the savings account, it is likely to earn bigger interest amounts. 

Some banks impose a restriction on the way the money can be withdrawn from the savings account. Banks may charge a transaction fee every time a withdrawal is made from the savings accounts. Some banks may require the customer to make regular deposits to the savings account on a specified date of every month. Most of the banks require the savings account holder to maintain a certain amount of minimum balance in the account, failure to which might result in penalties. 

While choosing a savings account, it is always a good idea to compare offers from different banks and benefits. Some things to consider before opening an account are listed below:

• While choosing a very high interest savings account can give more money in interest on savings, it can have several restrictions like no withdrawals, and reduced interest upon withdrawal and so on. Checking with the rules before applying gives a fair idea about the offer.
• Choosing the bank account that has no restrictions upon deposits or withdrawals will ensure complete control of the account holder upon the savings.
• There are banks that offer online fund transfers between savings accounts. Choosing a bank with such a facility not only makes money transfer easy, but gives the advantage of online banking to the account holders.
• Some banks provide the option of linking checking account and savings account. By choosing this facility, account holders can get the advantage of avoiding overdrafts and bouncing of checks due to lack of funds.
• Choosing a bank that has a strong customer service is always beneficial to account holders. Services like detailed activity reports of savings accounts can help monitor the account more closely.
• Some banks may have the restrictions upon the number of withdrawals made using the check or draft. But if they have unlimited withdrawals using a debit card in ATM machines, it is very convenient for the account holder. 

Some banks offer the account holder to turn a part of the savings into fixed deposit. This will have a time period until which any withdrawal cannot be made. This type of account will yield a higher interest rate than a normal savings account, and add a considerable amount to the total savings. This type is best suited to save for children’s education, or weddings, and other such occasions.