Thursday, August 9, 2018

4 Types Of Savings Accounts For Investors

Saving accounts are some of the most common products offered by banks. Almost all banks offer several different types of accounts, from regular savings to zero balance accounts and minor to senior citizen accounts. All of these accounts come with various different features that are meant to suit the requirements of the account holder. As such, not all accounts are equal. A customer must select an account depending on his financial goals. Most customers open these accounts to enable them to save money and build their corpus. If you too are looking at saving money, you should invest in one or more of these accounts.

Basic/regular savings account: Almost every bank customer begins his savings journey with a regular savings account. This type of account is also known as a passbook account in which the customer can get a record of all the transactions done on the account. These types of accounts allow you to earn interest bi-annually on your savings. Customers can visit the bank periodically or keep a tab on this account by opting for internet banking. If you intend to keep you money in your regular account you should choose banks like Digi Bank by DBS or Kotak Mahindra Bank as they offer high interest rates.

Recurring savings accounts: Banks encourage customers to open a savings account, which is a specialized account known as recurring accounts. These accounts, also known as deposit accounts, allow you invest a specific amount that can be transferred from your regular account every month. This is one of the best ways of putting away a specific amount from your savings and is similar to your provident fund account. Unlike your PF or PPF (public provident fund) account, you can close this account anytime you please. It comes in handy in case of emergencies.

Online savings account: Customers, who prefer to conduct their banking transactions online, can also open savings account online. Digi Bank by DBS is one such online, paperless bank, which allows you to park your savings. It offers an interest rate of 7% on your savings, higher than any other bank in the country. With your online savings account, you can create fixed deposits from your savings at any time you please, while also being able to conduct several other online transactions. Also, you can earn higher interest rates as compared to traditional basic savings accounts.

Fixed deposit accounts: Customers, who have large savings and are dependent on income from those, can open a separate fixed deposit savings account, which pays you a monthly or quarterly interest depending upon your requirements. You can open this fixed deposit in any bank or financial institution of your choice. If you are not dependent on the income from your fixed deposits, you can opt to earn your interest cumulatively, at the end of the fixed deposit tenure.

No comments:

Post a Comment

Decoding the Wealth Management Process!

Wealth creation refers to the process of growing your money by investing in various financial instruments. It helps create a significant fin...