Choosing a Savings Account More Than Just A Safer Piggy Bank
Choosing a Savings Account More Than Just A Safer Piggy Bank by Everette Jamison
Everybody should have a savings account, and preferably more than one. There are different types of savings accounts to meet different needs.
From basic savings accounts, which work well as starter accounts and which offer some interest but not a whole lot, you can move to higher-interest bearing savings accounts, money market accounts, certificates of deposits, and more.
Basic Savings Account
Basic savings accounts are just that. You deposit money, and it grows. Slowly. Still, if you leave it in there long enough and keep adding to it, its growth can be substantial over time.
The basic account is probably also the right account for kids who want to put their piggy bank savings to more effective use. But once they have saved enough, they too should consider upgrading. And if you wish, you can set your savings account up so that you can access your money through an ATM machine. Then again, you may prefer not to do that, the temptation is too great to use up the money. It's better to let it grow.
As with all banking services, if you want to open a basic savings account, it's worth your time to shop around and compare interest rates and minimum deposit requirements. Generally, interest compounds daily and is paid monthly. If you already have a regular bank, start your shopping there.
Money Market Savings Account
Once your savings have grown a bit, you may want to add a Money Market Savings account. You will earn more interest on your savings, yet you still will be able to access your money easily. You can even have ATM cards to get money at your leisure.
Certificates of Deposit
But there are more savings account options. Certificates of Deposit, also called CDs, allow you to lock in even higher interest rates for the time you decide to commit your money. Be sure to plan ahead, though, since you will lose some of those benefits if you need your money back earlier than planned. Certificates of Deposit generally come with hefty penalties for early withdrawal.
IRAs and Roth IRAs
At an even higher level, with much less flexibility but much higher rewards - there are savings instruments such as IRAs, Roth IRAs and similar savings accounts. The government has specific guidelines about how much you can save and when you can get your money back, so once you're ready to open an IRA or a similar account, talk to your friendly
bank representative to get the full details.
Choose the local Richmond Virgina Bank that offers Richmond Financial Services to all it's customers. Think http://www.firstmarketbank.com
Article Source: http://articles.directorygold.com
For more articles on Personal Finance visit the DirectoryGold Article Directory
For links to sites on Personal Finance visit the DirectoryGold Web Directory
Everybody should have a savings account, and preferably more than one. There are different types of savings accounts to meet different needs.
From basic savings accounts, which work well as starter accounts and which offer some interest but not a whole lot, you can move to higher-interest bearing savings accounts, money market accounts, certificates of deposits, and more.
Basic Savings Account
Basic savings accounts are just that. You deposit money, and it grows. Slowly. Still, if you leave it in there long enough and keep adding to it, its growth can be substantial over time.
The basic account is probably also the right account for kids who want to put their piggy bank savings to more effective use. But once they have saved enough, they too should consider upgrading. And if you wish, you can set your savings account up so that you can access your money through an ATM machine. Then again, you may prefer not to do that, the temptation is too great to use up the money. It's better to let it grow.
As with all banking services, if you want to open a basic savings account, it's worth your time to shop around and compare interest rates and minimum deposit requirements. Generally, interest compounds daily and is paid monthly. If you already have a regular bank, start your shopping there.
Money Market Savings Account
Once your savings have grown a bit, you may want to add a Money Market Savings account. You will earn more interest on your savings, yet you still will be able to access your money easily. You can even have ATM cards to get money at your leisure.
Certificates of Deposit
But there are more savings account options. Certificates of Deposit, also called CDs, allow you to lock in even higher interest rates for the time you decide to commit your money. Be sure to plan ahead, though, since you will lose some of those benefits if you need your money back earlier than planned. Certificates of Deposit generally come with hefty penalties for early withdrawal.
IRAs and Roth IRAs
At an even higher level, with much less flexibility but much higher rewards - there are savings instruments such as IRAs, Roth IRAs and similar savings accounts. The government has specific guidelines about how much you can save and when you can get your money back, so once you're ready to open an IRA or a similar account, talk to your friendly
bank representative to get the full details.
Choose the local Richmond Virgina Bank that offers Richmond Financial Services to all it's customers. Think http://www.firstmarketbank.com
Article Source: http://articles.directorygold.com
For more articles on Personal Finance visit the DirectoryGold Article Directory
For links to sites on Personal Finance visit the DirectoryGold Web Directory
Labels: Personal Finance
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