Searching for a safe haven for accumulated money usually ends with the assumption of a bank deposit. Hardly anyone verifies the offer of savings accounts, which in addition to attractive interest rates offer a number of additional benefits. We present the most important of them.
Many of us are still wondering what a savings account really is . We often lack the courage to just ask about it. Nobody wants to go out on a financial ignoramus. On the other hand, we live in the belief that safe saving is only a term deposit . Meanwhile, a savings account is a solution available at your fingertips, combining the advantages of a classic bank account and deposit, while ensuring flexible access to the funds collected.
Profit from the first dollar
The design and operating principles of the savings account mean that each interest transferred to the account is covered by the interest. Standard savings accounts do not have a specific deposit limit. This limit appears only in the case of promotional deposits , where increased interest rates are offered up to a certain amount. After exceeding the preferential barrier set by the bank, the rate drops to the standard level.
For example, the Korto Oswando Plus Will Bank guarantees a 2.55% interest rate for an amount of up to $ 100,000. Funds above this balance are already subject to a rate of 1.05%. This should be taken into account by those who have substantial savings. More wealthy bank customers can set up several savings accounts and distribute funds efficiently . The savings strategy can be enriched with fixed-term deposits or Treasury bonds, while remaining in the area of investments with a very low degree of risk.
Flexible access to funds
Another advantage of the savings account is flexible access to the collected financial resources. Unfortunately, the assumption of a deposit most often involves the need to freeze money for the period resulting from the contract. This may not be noticeable in the case of short-term deposits, however blocking funds for a period of several months can be quite a challenge. Especially in the case when the “penalty” for an earlier rupture of the deposit is the total loss of interest generated.
Savings accounts are free of this drawback, but unfortunately they have a different one. While the independent decision about when and how much to pay or withdraw from an interest-bearing account is an undeniable advantage, the high payment for such transfers may bury dreams of satisfactory profits. It is therefore worth checking how the costs are shaped by the aforementioned operations. It is common practice to free the first transfer in a month, however, the next ones can generate a load of a few or even several dollars. When using, for example, the Savers Millennium Bank Savings Account, you will have to pay a fee of $ 7.50 for the second and each subsequent monthly transfer.
A savings account is a solution that significantly supports effective multiplication of savings. If we use the offer that guarantees free and unlimited internal transfers, we can transfer funds to the account at a convenient time. Weekend payment or other non-standard period is not a problem . A savings account can also be a good “storing” of financial resources while waiting for a different, more lucrative investment opportunity.
By creating this guide, we took a look at the most attractive savings accounts on the market. All of the presented bills are promotional offers. This means that in order to take advantage of the increased interest rate, additional conditions must often be met, for example, to set up a personal account or to transfer only new funds to the account. Unfortunately, the proposed rates are valid for a strictly defined period (usually 3-4 months), and then they are reduced to the standard level.