A savings account is used solely for saving and appreciating funds. You open it at a bank and deposit your money into it for the long term. The bank adds interest to it at the current interest rate, so you save for a rainy day. Those who don’t have one should consider it. It’s better to set it up in advance so that if your washing machine breaks down, you have money on hand. Don’t wait until you need the money you’ve saved.
A savings account is quite different from a regular one
A current account is set up so that you have somewhere to receive your salary to cover your current expenses. You probably also have a credit card that lets you pay in shops and withdraw cash from an ATM. It doesn’t pay to have money saved in such an account.
The solution? Open a savings account to store your spare funds and make them grow in value. It can be set up for an indefinite period of time, and banks usually don’t charge any fees.
Did you know that a savings account pays off especially when you have unexpected expenses? You never know when your car or washing machine will break down, or when you’ll be without income. At that moment, you’ll thank yourself that you actually set up that savings account and put all your spare funds in it.
What does the best savings account look like?
You might think there’s nothing to it. But as it happens, nothing is as simple as it may seem at first glance. Even when setting up a savings account, it’s a good idea to pay attention to its basic parameters and compare different savings accounts with each other.
- You can send your savings to the best savings account as it suits you.
- You can withdraw and use the money you have saved at any time.
- Be interested in the interest rate. The bigger the better, but be careful not to negotiate a good rate for a limited period of time as part of a special offer.
- Also pay attention to the type of interest. Some banks work with banded interest, which means you have to keep an eye on the minimum and maximum amount of savings. Once you get between the restricted limit, the interest will change.
- What currency will you save in?
- Isn’t it a condition of having a savings account that you also open a current account for which you will pay?