4 Common Types and Benefits of Savings Accounts – 2020 Guide

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It is said that you should always put money on the side when you are earning a lot, and when the rainy days come, you will be able to lean on the cash you’ve saved before. The biggest mistake we make is trying to push cash aside when we notice that we are running out of funds, and when we earn a lot, we spend too much on things we don’t really need. One of the best ways to gather up funds for a new home, car, or just to afford the vacation of your dreams, is to open up a savings account.

By definition, this type of account is usually held in a bank, or a similar financial institution and they keep your funds safe. In most cases, you will gain some profits when you keep the money in a bank and you are able to make as many or as little withdrawals with little to no commission. In this 2020 guide, we are going to tell you more about the benefits of the savings accounts, and what the different types are. Continue reading if you want to learn how you can increase your profits, and how you can make sure your funds are always safe and protected.

1. Deposit

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This is the most popular type people use and there are many reasons for this. This type of account offers users a stable value, which means that no matter what happens to the currency, you will not lose money. It is protected by the federal deposit insurance corporation, so even if the bank goes bankrupt, you will not lose any of your funds. You will be able to earn interest depending on the sum you keep in the bank or the financial institution, plus you will be able to access your funds at any time.

An additional benefit is that there are limits to how many transactions you can make, or how many withdrawals you are allowed to do per month, and that will protect your cash form, anyone, trying to steal from you, or empty your time deposit.

2. High-interest

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As the name suggests, when you choose this type, you will be able to get a lot of higher interest than the traditional ones. It is said that every financial institution will offer you some type of interest when you choose to put the money in their deposit, but some places offer better interest than others.

Depending on the bank you choose, you should do your research and see what they have to offer. The rule is, you will get everything you are supposed to from the saving, but you will make a bigger profit the longer your funds stay there. It is said that the more cash you decide to deposit, the higher the interest rate is going to be. Talk to a financial advisor before you decide to put your money in a bank, and talk to several representatives to see what they have to offer to get you as a client.

3. Rewards

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How would you feel if you knew that every time you deposit a dollar, you have a chance to win a big reward? There are several types of rewards accounts, and in the main ones, the financial institution will give you some type of gift just by doing your business with them. These time deposits work in the same way as the traditional ones, the difference is just in the rewards. So, the next time you need to choose a bank, it would be amazing if you could see if they offer this opportunity.

There is another type of reward you may get, and prizepoolpromocode.com suggests that with every dollar you deposit, you get a ticket for a monthly prize drawing. This could get you some small gifts, or amazing big rewards. The great thing about this type of account is that there is no minimum, there are no additional taxes and fees, and everyone could get a ticket and play.

4. Joint

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Last on our list we have the joint depositions. As the name suggests, this type of accounts is made for two or more people. They are a great way for a family, or spouses to keep their funds together, and get a larger interest. It is preferred by many because there are some additional benefits that clients get when they open this kind of deposit.

One of the main benefits is that you get a lot of bigger insurance. In most places, as a single person, you will be able to get insurance for as much as 250 thousand dollars. When you use a joint account, you will get that insurance times the number of people that are part of the deposit. For example, if three people are part of the same agreement, you will get insurance for up to 750 thousand dollars.

Others

There are dozens of different types of deposits you can make, and it is up to you to choose the right one for you and your current situation. Some of the other types include:

  • Money market
  • Jumbo savings
  • Student
  • Certificates of deposit
  • College
  • Traditional
  • Roth
  • Retirement
  • Health

All of these deposits have a lot of benefits and the main one is that your money will be safe. You won’t have to worry about someone breaking into your home and stealing all of your savings, and you don’t risk someone accessing your account without permission. It is said that for younger people, college and student deposits are the best, and young couples should choose a joint one. If you plan on keeping the funds in the bank for a long time, choose something with a higher interest rate.

If you are unsure which is the right type for you, you should talk to the bank representative, or a financial advisor and as for their opinion. The best thing you can do for you and your funds is to do a lot of research, and talk to several representatives and see which place gives you the best offer, interest, and overall conditions.

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