Savings account-A great tool to save money
Meant to encourage the habit of saving money amongst people, a savings bank account not only ensures safe
keeping of your funds, it also helps you keep your expenses under control. Use of savings account to save money has become a much-touted concept in economic forums in recent times.
According to a recent survey, most of the money problems arise out of people’s indifferent attitude towards their own financial reality.
In our day-to-day life we can be a little more ambitious and try to save money by coming up with thousands of innovative ways.
We can maintain savings account so that we can put aside a portion of their liquid assets that could be used to make purchases later on.
With the technology revolution, the web media is bombarded with clear and impartial information and expert guidance for investors, entrepreneurs looking for ways to save money.
With the money saved in the savings account, you can also make some more money. Most of the banks have Money Market Savings Accounts.
These accounts have got higher interest rates than the savings accounts. Online banks provide higher interest rates due to the fact that the banks do not have to pay for buildings and staff.
There are many online banking facilities, which offer you with latest updates on money saving techniques. By adopting a few resource-saving techniques, you can save your money from flying away from your pockets.
You need to learn how to manage your money in order to save it from being wasted in avoidable costs every month.
But, you need to allot enough time for it. A recent. If you are an avid smoker then with a little bit of self-control you can curtail your smoking habits.
You can also bring down your housing expenses and earn some money by renting out your spare room. To augment your savings you can deposit your monthly earnings into two different accounts at two different banks.
This will help you to monitor your savings very easily. You can also monitor your personal spending via online banking and stay within your budget.
Through debit/ATM card you can withdraw money from the ATM centers of a particular bank which remains open 24 hours a day.
Many of the banks also offer Internet banking facility for the convenience of their clients. Savings Bank Account can be opened in the name of an individual or in joint names by filling up a simple form.
Young adults are now increasingly warming up to the idea of saving their money in a savings account.
The trend has already set in and it will be only a matter of time when children will also be taught about saving money as part of their school curriculum.
So, without wasting any further time, make it a point to save a portion of your money in a bank account every time you get your salary check.
Increase your financial prowess adopting a few tricky money-saving techniques and be assured of a peace of a lifetime.
Savings Account Interest Calculator
Thinking of opening a savings account? That’s great! You can never go wrong with a savings account. And if managed properly, a savings account is even better than having good credit standing.
Just think: A savings account is a way for you to save your liquid assets for use in making purchases. By a simple visit to the bank or the nearest ATM machine, you have the money to pay for all your purchases in cash.
That means, no worries about the state of your finances in the future, unlike credit or debit cards.
Another advantage of a savings account over credit is that the money in your account grows and grows. Banks or any financial institutions where you have a savings account pay you the interest of your money.
So even if you are not doing anything with your money and only opened a savings account for safekeeping of a portion of your income, your money continues to grow because of earnings in interest.
However, before you open a savings account, it is important that you consider how much interest the bank offers.
The higher the interest, the faster you can double, triple, even quadruple your money. So a little comparison shopping will go a long way.
One of the tools to aid you in comparing bank rates is a savings account interest calculator. Below are a few websites that offer you savings account interest calculators, whether for comparing interest rates or simply to help you decide if opening a savings account is worth it.
Savings Calculator
(DinkyTown.net/java/compoundsavings.html)
The savings account interest calculator allows you to calculate how much earnings interest you can make in a given number of years.
The savings account interest calculator also takes into account the additional contributions you make, the rate of return (interest), and compounding (earnings on an investment’s earnings, plus previous interest).
In addition to the savings account interest calculator, the site also allows you to view a report of your statement for itemized details of your account.
Compound Savings Interest Calculator
(CSGNetwork.com/compounsavingsintcalc.html)
Another good site to visit to determine your total earnings in a given number of years is the CSG network website. The savings account interest calculator is designed to calculate the compound interest of your savings account over a particular period of time.
This is different from a simple savings account interest calculator since compound interest includes the interest on the original amount you deposited plus the interest earned. The formula therefore would look like this:
(Original Amount + Earned Interest)
x
Interest Rate
x
Time on Deposit
______________________________
TOTAL amount of interest earned
There are several more websites that offer a savings account interest calculator to help you calculate your savings account. But the above two are great places to start.
open an online savings account
It is quite noticeable that our global market have made great advancements towards greater technology. One of the major contributions of the technological progress is online banking.
Several banking institutions offer online banking options and one of the most popular choices of online banking is creating an Internet savings account.
What are Internet saving accounts exactly?
Well, Internet savings accounts are the alternative to an instant savings account. If you create an Internet savings account then it is linked to your normal checking account, thereby giving you an easy access from your online savings account to your checking account.
By virtue of this, the money that you deposit in your checking account can be easily transferred to your savings account and vice versa.
This can be done either online or via phone. Owing to the low overhead costs, there are several financial organizations that offer higher interest rates.
to the Internet savings account holder and this is the biggest reason why more and more people are opening an Internet savings account for themselves and their families.
So, if you are still in two minds about opening an Internet savings account, take my advice, go for it. Not only you will enjoy higher interest rates ( compared to what you get with a traditional saving account) but also you will be entitled to lots of other benefits.
Read on to find out what they are. The renowned online bankers offer perks to the online account holders in order to stay ahead of the ever growing competition in the banking industry.
The perks include lucrative investment options, checks, debit cards, various loan options etc.
One thing you must know about Internet savings account is that the interest rate is calculated on a daily basis, paid monthly and can vary from day to day.
The biggest advantage of having such a savings account is that you can have free access to your account from the very comfort of your own bedroom at any time you want.
Yes you don’t have to worry about commuting to your bank, standing in the queue to monitor your account. Internet savings accounts are ideal for people who want to save their hard earned money.
The best thing about creating an online savings account is that you can open your account with as low as one dollar (which is not possible,
if you want to open traditional bank accounts) It’s true that there are no time restrictions as to when you can deposit or withdraw money from your Internet account, however,
bear in mind that there is no interest on the full balance account in the month when you withdraw money from your account. Since these accounts are all on the Internet, so it doesn’t matter where you are based.
Therefore, an internet savings account saves you from the hurdle of going through all the formal procedures of closing or transferring an account(like what you have to with a traditional bank account)when you are relocating. To conclude, an Internet savings account is the best option to multiply your savings in a short span of time.
So go ahead and open an Internet savings account today and enjoy the luxury of a mobile bank account to last you a lifetime through.
Savings Account Is Important
There are many different reasons that prompt people to create a savings account. You may be looking to create a savings account to have some extra money for emergencies or to save up for a vacation.
Perhaps you would like to save money for your children’s college education or simply provide them a security net when they enter adulthood.
Some people may create a savings account because they want to save money for retirement. All of these reasons are typical for most people. There could be thousands of reasons that any one person opens a savings account.
The problem is what type of saving account do you open? Well, first things first, you should know that the best benefit of a savings account is that they all earn interest on the money in the account. Typical interest rates are anywhere from .55% to 4.25%.
Banks usually have many different levels of savings account that all require different deposits and balances. These range from regular savings to what may be called platinum savings, money market accounts and retirement accounts.
Each will have different fees, deposit and balance requirements. You will want to research different banks to find the one most suitable for your savings account needs.
The internet has made life easier for a great many people and it is no different when it comes to banking. The internet has opened the doors to many more options when it comes to a savings account.
Thanks to the internet, it has never been easier to do comparison-shopping with different banks. You can shop and compare the different rates and other benefits, right in your web browser.
Talk about convenience! What is even better is that the internet has now allowed people to do their banking right online, in the comfort of their own home. You should consider opening an online savings account.
By opening an online savings account, you will be able to have complete control over your money in an instant.
You see, many people have turned to an online savings account because it sure beats going to the bank every time you need to check your balance,
transfer money into a personal checking account or just see what transactions have occurred in your online savings account. You can have access to a statement prior to ever seeing one in the mail.
In fact, many banks now offer the option of receiving your online savings account statement online or paper through the mail. The choice is yours.
An online savings account has numerous benefits. The first is being able to perform all of your banking duties right in the comfort of your home. Another benefit of an online savings account is that you eliminate or at the very least reduce trips to the bank.
With an online savings account, you can check your balance, transfer money to and from another account and review your account history without ever having to leave the house. This saves you a great deal of time and money.
High Yield Savings Account
If you keep up with the times, then you are probably familiar with the term “high yield savings account.” In fact, you will find many banks aggressively advertising such
high yield savings account as the next best thing to investing in the stock market: It’s safe. Zero risk. And it promises high yields as well as tax benefits. Surely, it can’t get any better than this.
But what does a high yield savings account mean? How do you differ it from other accounts?
In this article, we’ll take a look at what a high yield savings account means and where to find them.
What is a high yield savings account?
You know what a savings account is. It is a type of account wherein you deposit a sum of money for a typically short period of time. A high yield savings account is simply a savings account with ideally competitive rates.
What is a competitive rate? In most cases, banks will offer you perks for opening a high yield savings account, and among these perks is a higher APY,
or Annual Percentage Yield. But keep in mind that you may not always agree with what banks consider as a “high APY.”
What are the requirements?
A typical high yield savings account is offered only to a few special customers. So, not everyone can actually open this type of account. In order to qualify for a high yield savings account, you need to meet any one of the following criteria:
* Make a large deposit of your initial account. The banks will usually inform you how much is sufficient.
* Maintain a certain high balance for a period of time. In other words, do not be too trigger-happy with your money withdrawals. You are required to keep a certain balance in your account.
* Limit your transactions in or out of the account.
* Have other banking transactions.
NOTE: Banks often only allow valued customers to open high yield savings accounts.
Where can you find high yield savings accounts?
With the advent of Internet banking, one of the best places to look for high yield savings accounts is the Internet.
In fact, most online banks offer rates that are relatively higher than those of regular offline banks. Moreover, initial deposits are very low. Some banks even allow costumers to open a high yield savings account for as low as a dollar.
Note also that if you bank on the web, there are lesser restrictions. As long as you maintain a certain balance (generally lower compared to offline banks), you can make as many withdrawals or deposits as you want.
The only downside to the process is that you will have to link your checking account with your savings account in order to affect a withdrawal, since online savings account do not allow you to directly funds from your account (i.e., ATM or write a check).
High Yield Savings Accounts
Savings accounts are operated by a commercial bank or mutual savings bank, and are backed by the FDIC up to the limits indicated. Money in savings accounts earn interest over time, helping to grow your wealth.
The amount of interest savings accounts earn is dependent upon the type of savings account and the establishment where you save your money. Interest rates are also dependent upon the economy’s current condition.
In 2007, the national savings account interest rates for bank accounts is about 2%. Many people prefer to save their money in organizations that offer high yield savings accounts. Primarily, online banks are able to provide higher rates of interest for savings accounts.
Online Savings Accounts Yield Higher Interest Rates
Because an online bank does not have the operational overhead that a physical bank has, they are able to pass along those savings to consumers by offering higher interest rates on savings accounts.
Most online savings accounts will also be free, with no minimum deposits to maintain and no fees for depositing or withdrawing money.
While some people may have reservations about using an online bank, you can ensure the bank is as reputable as your local bank simply by checking to see if the bank is FDIC Insured.
If the bank is FDIC insured (usually up to $100,000 for individual savings accounts), you will receive the same protection from the online bank as you would from your neighborhood banking establishment.
How Online Savings Accounts Work
If you’ve never had an online bank account, it might seem confusing at first. How do you deposit money to an account held with an online company? How do you take money out when you need it?
Most online savings account providers operate by connecting your online accounts with your existing bank accounts- which provides a few benefits. First, you don’t have to close your existing accounts in order to take advantage of high yield savings accounts.
Secondly, with connected accounts, you can easily make transfers from your physical checking or savings accounts into your online account with a phone call or a few mouse clicks! Most online banks also allow you to set up automatic deposit options,
and either have your paycheck deposited into the account automatically, or have a transfer from your existing bank accounts into your online savings account done at regular intervals.
Taking your money out of an online account works the same way- most banks allow you to transfer the money from your online savings directly to your existing checking or savings account.
Some online providers offer ATM cards that can be used to access cash instantly from any ATM, while still others might provide you with checks connected to your online account.
High Yield Savings Account Providers
Finding an online savings account with high interest rates is quite easy. There are numerous providers- some operate completely online, while others have both a physical, brick and mortar bank and have added an online component.
ING Direct: offers high yield savings accounts, interest bearing checking accounts and investment opportunities.
HSBC Direct: you do not need an existing account with HSBC to use their savings accounts or other investment products. HSBC accounts include an ATM card for easy withdrawals and deposits from any HSBC bank branch.
Citibank Direct e-Savings: offers a money market account that can be linked to your checking account. Offers online bill pay services and other Citibank online features.
Emigrant Direct: offers savings accounts with no minimum balance requirements and easy transfers from your existing bank accounts to your new online savings account.
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