Hi there! If you’re reading this article, then that must be because you want to learn of Savings Accounts. Everybody knows that they need to invest their money in order to see it grow and allow them to save for retirement. The problem is that there is a bewildering array of investment options and it can be hard to know where you should and where you shouldn’t invest your money. One investment option that everybody should take advantage of is a savings account.
This is just a regular bank account that pays you higher interest than your everyday bank account in exchange for having slightly restricted access to your money. A savings account is probably the safest investment option available and something that should be a part of everybody’s portfolio.
A health savings account is pretty much what you would think it would be, it is an account at a financial institution, usually a bank that pays interest on your deposit. This is usually the first kind of bank account that most of us open when we are children.
A savings account is not as convenient for day to day banking as other accounts because you may have limited access to your money for example you won’t be able to write checks on the account, but you can usually access your money with a bank card. In exchange for not being able to get your money out of your account the bank will pay you a higher interest rate.
A savings account is one of the most reliable investments that you can make which is a big part of what makes them so popular. There is virtually no risk because even in the unlikely event that the bank should fail your deposit is insured. Since the money is also more liquid than most other investments it is a convenient way to earn interest on money that you may need access to.
A lot of people are wary of putting their money into a long term investment like a savings bond because they worry that they may need to use the money at some time before the bond matures. This isn’t an issue with a savings account since you can get your money out when you need. While the interest paid on a savings account is lower than that paid for other investments the ability to access your money usually makes it a good option.
The internet has created a whole new category of savings accounts. These are accounts that are offered by banks that exist strictly online. Advantage here is that since they have less overhead they can pay higher interest rates. The disadvantage is that there will be more restrictions on access to your money. In most cases in order to get your money you will need to transfer the money from your online savings account to an account that you have at a traditional bank. In most cases this will take about week so these accounts are not as liquid as a regular savings account.