As the economy is developing day by day and people are getting wealthy, their savings is getting as rapid as their Investment. There was a time when the savings account was not a big concept but at the present time the market is stuffed with several types of savings accounts all having different pact and criteria. Therefore it is nowadays quite difficult for people to choose a savings account. There are a number of factors one should look upon carefully before starting a savings account like the movement of money, kind of tax payment, amount of money etc. Here are some of those savings accounts detailed below. Let us have a look at that.
- Instant cashes Savings Account:
Such accounts allow withdrawing money instantly whenever needed without any difficulty. There are a number of ways offered by the accounts following which one can withdraw money from his account.
Some of these accounts provide a plastic cad or ATM cards using which one can easily take out money from an ATM machine. Some offers online transaction of money without any extra fine or penalty or some allows the account holder to take out cashes through over the counter extraction.
Such instant savings accounts are also known as emergency savings account as these accounts help one to withdraw money immediately in emergency purpose and these can be availed at any place where the cash machines are available.
- Notice Savings Account:
The working principal of this type of account is quite different from the previous account. In this kind of savings account the individual in an advance needs to inform the bringer that he wants take out some money. It reflects in the name of the account as well. In the past time the notice accounts used to proffer a higher interest rate than that of the instant ones but nowadays it is not that big issue. Different notice accounts have different rate of interests and so before opening a notice account it is always better to scrutinize the interest in details. If there is a quick withdrawal from the notice savings account the holder may lose some interest. It is not a good option to use for emergency purpose.
- Fixed Rate Bonds:
In such savings account the provider offers a fixed rate of interest over a particular period of time. This type of savings accounts can be extended but there are some banks that does not allow the holder to deposited repeatedly rather they ask for a lump sum amount. So it is a drawback. In addition such an account is good if and only if the depositor is sure that he does not need to withdraw the money before the time or else he may have to bear a huge interest penalty.
- Cash Isas:
This is an individual savings account especially for UK tax payers. Although this accounts do not offer a smart interest rate but because of their tax free system the saver gets more returns than other accounts. The amount of deposit varies year to year.
- Regular Savings Account:
It is a perfect destination for beginners since in such accounts the saver needs to deposit money on monthly basis. But it restricts the number of transaction so not ideal for emergency purposes.