Saving money and building financial investments is an extremely important aspect of our lives. A savings account is one of the most basic accounts offered by banks today that consumer can use to invest and save money. The interest rate on a normal savings account is fairly low which leaves many consumers to question the value in bank savings accounts and ponder why open a bank savings account in the first place.
Opening a savings account is certainly one way to contribute to investment objectives and future financial goals. A bank savings account can be used to save money for planned expenditures, unexpected expenses or as part of a diversified financial plan. Money deposited in a savings account will earn interest over time, guaranteed. With its simplicity, all a bank savings account customer has to do is take some of their income or other available funds, put it aside in the savings account, and watch it grow.
Not only does the savings account offer interest on the account, but it also has limited access to the funds providing liquidity to the account holder. Savings accounts can provide access to the deposited funds in a number of different ways. The most common method of accessing savings accounts funds is directly with a withdrawal at the bank. With some savings accounts, the account holder can also access their funds at an ATM. Some banks also allow direct transfers from the account to another bank account such as a checking account with the bank or even another bank. Generally, savings account withdrawal amounts are not limited but the number of withdrawals is limited per month.
Bank savings accounts also offer safety and security for the account holder. Bank savings accounts are insured by the FDIC for up to $250,000.00 per account holder.
The benefit of maintaining a portion of your investments in a savings account includes the liquidity, the interest earned and the preservation of principal with FDIC insurance coverage.
Since the interest rate on a normal savings account can be quite low, choosing a savings account with a high interest rate is an important aspect in using these accounts. A number of banks offer high yield savings accounts that offer interest rates well above the national average bank savings account rate. Savings account shoppers may consider setting up a savings account with an online bank. Online savings accounts may offer a higher interest rate than can be found at a traditional bank branch.
Consumers that are shopping for a savings account need to consider a number of factors when choosing the best savings account that suits their needs. Savings account features to consider include the minimum balance requirements for the account, the interest rate on the account and the bank access or access to the funds deposited.
Savings account can provide a number of benefits to the account holder including safety, investment growth with interest earned and convenience. The best savings accounts are safe, pay a competitive interest rate, and provide easy access for deposits and withdrawals of the account holders funds.
For more information on the top ten savings account rates or money market account rates please see Money Market Account Rates or Savings Account Rates. To see more information on the best online banks refer to Best Online Bank and to see some of the best online savings accounts available see Best Online Savings Account. Current Bank promotions and deals can be found at Bank Deals.
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