What do you do with your money to save them towards your goals?Most people’s answer to this question is a savings account. This article consists of all the facts that determine which accounts are best for you.
In this article, we are going to tell you about savings accounts, money market accounts and bank certificates of deposit accounts with their tips. Read the complete article so that you can better decide which bank account best fits you.
Saving accounts
Savings accounts are the traditional places that allow us to build the nest egg. These bank accounts provide low-interest rates, while you can withdraw the funds easily through contact with a person or ATM.
Tips
- Consider setting an amount that can be automatically transferred from the checking accounts to the savings account every month. It is the best place to make and grow your savings quickly.
- Find out if the saving account has the minimum balance requirements or not. How do they limit the withdrawal every month? Will the rules of the savings account suit you?
- Research the online options. It provides a higher savings account interest rate as compared to brick-and-mortar banks.
- You should keep in mind that the savings account must have a better rate of interest to grow and manage the savings.
Money market accounts
Money market accounts are also like savings accounts, but here you are allowed only limited checks. These bank accounts have the minimum balance.
Tips
- Check if the ability to write cheques is convenient. Check the ATM facility and withdrawals every month.
- This bank account is not fit for people who need regular access to their cash with ease.
- Even though the interest rates on these accounts are higher than the savings account, they are still not better than the savings bank accounts.
Bank certificate of deposit
You can invest your money for a specific time, ranging from months to years, through the bank certificate of deposit. You can get the return with CD when the tenure of the account is over.
Tips
- This account is a good choice if you want the insured investment and would not require the money before the CD matures.
- The longer the term of the CD account, the higher the interest rate
- The interest rate on CD may be higher than the above two mentioned accounts, but still, it is less considered by people for making investments.
Conclusion
By reading all the above facts, it is concluded that savings accounts is the leading choice among all available bank accounts. Savings accounts are proven to be an excellent choice for the majority of people, especially for those who are ready to save part of their money every month and want to earn interest in their savings.
No other bank account has the fantastic features and benefits that the savings account has. Hope you now understand which account is suitable for you.
