Generally a saving account is an account in which one places money to earn a small amount of interest and savings account funds are usually easily accessible, though some banks do charge for withdrawing money early. Now all the banks offers ATM facility in ATM we can withdraw money in 24 hours. If any bank. If the bank declares liquidation, is the target of mismanagement of funds, the Federal Deposit Insurance Corporation (FDIC) insures your account, up to 100,000 US dollars (USD). So you no need to worry about your savings. So whenever open an account look for one that is FDIC insured. You also want to shop around for a savings account that offers the best interest rates. In the past, it was often the case that banks offered a slightly higher interest rate than did credit unions.
Most of us wonder how a savings account works and is profitable to the bank or other financial institution. The simple clarification is that you are actually lending your money to the financial institution. In return for this loan, the bank offers you part of the interest rate they charge customers. Sometimes people might use an interest checking account instead of a savings account. If you really plan not to spend your money for a few months, it makes sense to use a savings account instead. Interest checking accounts pay much less interests than does a savings account, and normally requires maintaining a high minimum balance, about 1000 USD. If this balance is not maintained, the checking account may actually charge you bank fees for your use of the account, which nullifies any potential interest earned. Generally saving accounts minimum deposit, usually 100 USD and kids saving account need 5 USD. Some banks offer bonus if you maintain the account for long period.
Most of us wonder how a savings account works and is profitable to the bank or other financial institution. The simple clarification is that you are actually lending your money to the financial institution. In return for this loan, the bank offers you part of the interest rate they charge customers. Sometimes people might use an interest checking account instead of a savings account. If you really plan not to spend your money for a few months, it makes sense to use a savings account instead. Interest checking accounts pay much less interests than does a savings account, and normally requires maintaining a high minimum balance, about 1000 USD. If this balance is not maintained, the checking account may actually charge you bank fees for your use of the account, which nullifies any potential interest earned. Generally saving accounts minimum deposit, usually 100 USD and kids saving account need 5 USD. Some banks offer bonus if you maintain the account for long period.
