Savings Accounts

Savings Accounts

What are savings accounts?

A savings account is an interest-bearing deposit account held at a bank or other financial institution. Though these accounts typically pay only a modest interest rate, their safety and reliability make them a good option for parking cash that you want available for short-term and long-term needs.

Savings accounts may have some limitations on how often you can withdraw funds, but generally we offer exceptional flexibility that’s ideal for building an emergency fund, saving for a short-term or that long road ahead. goal like buying a car or going on vacation, or simply sweeping surplus cash you don’t need in your checking account so it can earn a little interest.

How Savings Accounts Work?

Savings and other deposit accounts are important sources of funds that financial institutions use for loans. For that reason, you can find savings accounts at virtually every bank or credit union, whether they are traditional brick-and-mortar institutions or operate exclusively online. In addition, you can find savings accounts at some investment and brokerage firms.

Savings account interest rates vary. With the exception of promotions promising a fixed rate until a certain date, banks and investment companies might change their rates at any time. Typically, the more competitive the rate, the more likely it is to fluctuate.

Changes in the federal funds rate can trigger institutions to adjust their deposit rates. Some institutions offer high-yield savings accounts with significantly higher interest rates for larger minimum deposits, which may be worth investigating and this is what our Company is focusing more on, allowing you to invest money in a secure saving account.

How to Maximize Earnings From a Savings Account

Although most major banks offer low interest rates on their savings accounts, we provide much higher returns. In particular, investment companies offer some of the highest savings account rates, they spend less on overhead and can often offer higher, more competitive deposit rates.

The key is to shop around, starting with the lowest investment to hold your checking account and then explore further. Even if that you will not have a competitive savings account rate, it will give you a frame of reference for how much more you can earn by moving your savings with a better account.

KEY TAKEAWAYS

Because savings accounts pay interest while keeping your funds easily accessible, they’re a good option for emergency or short-term or long-term cash.

In exchange for the ease and liquidity that savings accounts offer, you’ll earn a lower rate than that paid by more restrictive savings instruments and investments.

The amount you can withdraw from a savings account is generally unlimited.

The interest you earn on a savings account is considered taxable income.

The Bottom Line

Savings accounts offer one of the simplest ways to earn interest on the money you have. They offer higher interest rates than a regular checking account, while still making it easy to spend and withdraw money. However, savings account rates are much lower than other investments, and they don’t keep pace with inflation. With this in mind, if this is the right way of investing your money, our Financial advisor will assist you in the best way to find the right account for you, which will suit your needs and goals, wither for the short-term or the long-term.