Why Savings Bank Account?

A savings account is the simplest type of bank account held by a depositor/customer in a bank or any financial institution. These customers deposit money i.e. their financial savings in this account. The bank stores this money securely. The bank also ensures that the depositor earns returns on the balance in his account. This returns earned is known as the interest and the amount earned depends on the rate of interest. Banks offer different types of savings account designed with different features to suit the customer needs. The money available in a savings account is easily reachable through ATM cards. Some type of savings accounts have a minimum limit for daily cash withdrawal and a certain amount of money must be maintained as minimum balance. Usually people with a steady source of income open savings account. But students, senior citizens, pensioners, etc. can also open savings account with any bank.

Keeping your money liquid

Savings accounts and money market accounts allow you to withdraw your money at any time, which is rarely an option with CDs or long-term investment options. Savings accounts allow for unlimited withdrawals by teller, mail or ATM, but federal regulations limit you to six telephone, electronic or preauthorized transfers per month. Keep in mind, only three of these withdrawals can be by draft, check or debit card. Nevertheless, you can access the money in your savings account when you need it most.