A savings account is an account where you store money that you don’t plan of use use spend within a short period of time. The purpose of the account is to keep you money safe and always accessible while generating interest for you. But there are different types of savings accounts for you make your choice. Each account comes with different features depending on the bank or credit union. It is essential to understand each features before making your final choice.
In this article we are going to give a breakdown on details about savings accounts and eonesavings accounts
Types of Savings Accounts
We have different types savings account with include:
- Basic savings accounts
- Online savings accounts (eOneSavings Account)
- Money market accounts
- Certificates of deposit (CDs)
- Interest checking
- Student savings account
Basic Savings Accounts
In a layman’s understanding, a savings account is just an account you keep money that can not be used at the moment. You deposit into the account, earn interest, and take money out when the need arises. There are some limits on how often you can withdraw funds (up to six times per month for preauthorized withdrawals – but unlimited in person), and but there is no limits to which you deposit into the account.
Online Savings Accounts (eOne Savings Account)
Highlights of online bank accounts include:
- High interest rates on your deposits
- Zero monthly fees
- No minimum balance requirements
- Leading-edge technology
These types of accounts were initially associated with online-only banks. But most brick-and-mortar banks now include online capabilities like, online bill payment and remote deposit, and some banks have online-only options with lower fees and high rates compared to their standard accounts.
Money market accounts (MMAs)
Money market accounts similar and operates like savings accounts. The major difference is that you can easily have access to your cash: You can usually write checks against the account, and you might even be able to spend those funds with a debit card. Though, as with any savings account, there are limits on the number of times you can make withdrawal in a month. Money market accounts often pay more than savings accounts, but with larger deposits required. They are pretty good for emergency savings option because of the easier access to your cash, but you still earn interest.
Certificate of Deposit
A certificate of deposit (CD) is a time deposit, a financial product commonly sold by banks, thrift institutions, and credit unions. CDs are similar to savings accounts in that they are insured (in the US up to $250,000) “money in the bank” and thus, up to the local insured deposit limit, virtually risk free.
If you really need access to your cash (and you still want to earn interest), you might get what you need from a checking account. Traditional checking accounts don’t pay interest, but some types of accounts allow you to earn and spend as often as you want. Online banks offer checking accounts that pay a little bit of interest (typically less than a savings account). Reward checking accounts pay even more, but is difficult for one to qualify for it.
Student Savings Accounts
With the exception of online banks, savings accounts can be expensive if you don’t keep a large balance in your account. Banks charge monthly fees, and they pay little or no interest on small accounts. For students (who spend most of their time studying — not working), that’s a problem. Some banks offer “student” savings accounts which help students to avoid fees until they get a job and can qualify for monthly fee waivers.
If you are a student, a student savings account at a brick-and-mortar bank or credit union is a great option for your first bank account. Be aware that the account may convert to a “regular” account at some point, and you will need to be mindful of fees after that conversion.
A savings account is a great place to keep cash that you don’t plan to spend instantly. These accounts keep your money safe and accessible while generating interest for you. With the breakdown in this article we believe you have better chance choose the right option for your savings accounts.