Overview of Savings Account
The savings accounts are those that provide the holders of these accounts a certain interest as a form of payment. The savings accounts are normally not used as a form of financial asset. The savings accounts are widely used in day-to-day transactions.
Providers of Savings Accounts
Nowadays a significant number of financial institutions are offering a number of savings accounts and some other related services.
These institutions include the following:
- Commercial Banks
- Credit Unions
- Savings Associations
- Mutual Savings Banks
- Loan Associations
Utility of Savings Accounts
The biggest advantage of the savings accounts is that the people can save a certain amount of money. This money can be used later in order to buy assets that provide these account holders with some financial returns.
Features of Savings Accounts
Following are some of the salient features of the savings accounts:
- Each and every savings account provides a passbook or a bank statement. These documents give well-detailed lists of all the monetary deals that have been executed by the holder against the particular savings account.
- The funds have to be kept for a minimum possible amount of time.
- A lot of financial organizations that offer savings account services also provide money market accounts and demand accounts that allow the holders to issue checks against these accounts.
- A majority of the savings accounts provide the holders with unlimited access.
Online Savings Accounts
The services of the online savings accounts can be availed at convenient rates. Some of these online savings accounts also provide higher rates of interest than the conventional savings accounts. The introduction of the World Wide Web has actually helped in bringing down the costs of service to be paid by the account holders.
As a result of the excellent returns provided by the online savings accounts a lot of savings accounts that are being provided offline have been forced to increase the rates of interest that are being provided by them.
Notice Deposit Accounts
The notice deposit accounts are a variation of the savings accounts. These are available in the United Kingdom. The unique feature of these accounts is that the holder has to provide a notice of at least 90 days before he withdraws from the account without paying any fees.
However, the holders can also pay a fine that is equal to the interest that may be earned in the same length of time as the notice period.