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What is a Savings Account?

The importance of saving money cannot be overemphasized despite how difficult it can be. Considering that the money we make can never be enough for us, putting aside a part of it for future use can be extremely difficult.

However, such uses are often much more important than most of the things we would use the money for if we don’t save it. Imagine spending the money you would have saved on drinks or a PlayStation 5, only to later need $100 urgently to fix your car or pay a medical bill. A savings account is a type of account you can open to save money on which you would get a particular interest within a period.

 

What are the most popular Savings Accounts?

There are two most popular kinds of savings accounts: Normal Savings Account and Fixed Savings Account. For a normal savings account, you can still access the money anytime you need the money. However, the interest will be significantly smaller.

Fixed savings account, on the other hand, means you would specify a particular period of more than 3 months or thereabout before you can access the money. If you must withdraw the money before the term agreed, you could lose most or all of the interest that would have accrued.

 

What kinds of Savings Accounts are there?

There are many other types of saving accounts with different rules, but generally, under the ones, you can access at any time and those that are fixed.

For instance, fixed savings could be for 3 months, 6 months, a year or over a year. In most cases, you could negotiate the interest rate if you are depositing a high amount of money for a long time.

 

How important are online reviews when choosing a savings account?

When you are choosing a savings account, it is important to read reviews. With reviews, you would be able to find the best savings account with the best interest rates. You would also get to know financial institutions that would return your money and interest immediately if it is due.

However, there are those that could or will delay as well as those with the risk of closing up or running away with your money so take caution!

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