Understand the 6 Types of Savings Account Before Opening One
Saving account is a personal, (or sometimes business) bank account that could be used to save, and collect money. Other financial institutions could be used to save up money such as investment firms, or brokerages. There are also several types of saving accounts that many people can use to make sure that they can control more on their financial situations.
What Are The Types Of Savings Accounts?
In this article, we are going to show you different types of savings account, and the 6 most commonly used savings accounts. We are also going to recommend which one is the best for business, or the best for your savings.
Regular Saving Account
It is one of the most common saving accounts that you could find in banks. It is mostly use for a common purpose, parking your money so that you could use, transfer, or store it in a safe place, while also having access to it whenever you want.
This type of money savings doesn’t yields more interest rate, and most of them also have fairly medium to high monthly rates, so be sure to research it first before opening an account. One advantage of the regular saving account, however, is that it can open with a very little amount of deposit.
Money Market Accounts
Money market accounts are accessible savings options, but it also yields better rate than regular saving account. It combines the easily accessible regular saving, while also combining it with a checking account that has better rates. This account can also used to write checks.
However, there will be higher minimum deposit rates for this type of account, and with a monthly fee that is slightly higher than the regular one.
High-Yield Investment Savings Account
High-yield investment is a type of savings account that is suitable for people who are looking for competitive rates, while also having minimal monthly fees. Most of the time, you will find this type of investment saving account in online banks, as they also offer different rates and types of savings account.
One big disadvantage, however, is if you are opening it in an online bank, there will be no branch banks, therefore it makes it a bit harder to cash out in an emergency.
Cash Management Account
A cash management account is a type of savings that would let you have more control over your finances, hence it will make it easier for you to invest in another type of savings, or investment, such as retirement savings.
They can use to earn more interest with your money, and they could have both advantages of savings and checking accounts. However, the more you invest, the more rates it grows, and sometimes you also limited to the brokerage or investment firms with it.
Cd Account
CD or Certificate of deposits has a fairly above-average interest, which would make savers better financial savings. Most CD account doesn’t have monthly administration fees, therefore it is very good options for long-term financial savings.
However, once you are registered as a CD account, you might not be able to withdraw your money until the maturity date.
Specialty Savings Account
Specialty savings are a type of financial savings account that lets you tailor your saving and investment plans to suit your need. It can help you earn interest, while also saving for specific goals, be it for the long-term like retirement, or short-term such as short investment.
Those are 6 types of savings account that you could open in many banks or other certain financial institutions. Understanding different types could make you a better financial planner, and save up a lot more money.
