Saving Account types, interest rate, and features

Saving Account -

A Savings Account is a basic type of bank account that allows you to deposit money, keep it safe, and withdraw funds while earning interest. Savings Accounts help feed your banking needs and provide a small interest on the deposit maintained. Interest is calculated on a daily basis on the daily closing balance in the Account.

Interest will be paid quarterly in March, June, September, and December.

All Banks have different Interest rates. Are below

Bank Name                                Minimum balance req.                   Interest Rate(per Annum)

How Actually Savings Account work?

When You open a savings account at any bank. The bank pays you interest on The money that you deposit and leave in that account. The bank then loans that money out to other people, only they charge a slightly higher interest rate on the loan than what they pay you for your account.

Saving Account Types -

• Deposit account - 

• Money market account - 

• Certificate of deposit -

Each one has the same basic premise to give your money to the bank and in return, the money will earn interest.

    Now we Discussed All saving account types in details:-

1. Deposit account - A deposit account is a bank account maintained by a financial institution in which a customer can deposit and withdraw money. Deposit accounts can be savings accounts, current accounts, or any of several other types of accounts

        Types of Deposits

• Savings Bank Account.

• Current Deposit Account.

• Fixed Deposit Account.

• Recurring Deposit Account.

      2. Money market account - 

            A money market account is an interest-bearing account at a bank or credit                     union.

• Money market accounts are insured by the Federal Deposit Insurance Corp. At Bank & National Credit Union Administration (at credit unions), so you won't lose your deposits even if the financial institution goes out of business.

• You can open money market accounts by deposit between $500 and $2,500 initially, and many will require the same amount for a minimum balance or you will pay penalties or maintenance fees.

• Money market accounts are generally a safe investment...because banks use this money from these accounts to invest in stables like government securities, and commercial paper.

     3. Certificate of deposit - 

A certificate of deposit (CD) is a product offered by banks and credit unions that provides an interest rate premium in exchange for the customer to agree to leave a lumpsum deposit untouched for a predetermined period of time.

• Certificate of deposit issued in India for a minimum of ₹1 lakh and in subsequent multiples of it. The Scheduled Commercial Banks (SCBs) and All-India Financial Institutions are eligible to issue a CD. 
• Co-operative Banks and RRBs cannot issue a CD. CDs issued by SCBs have in term period anywhere between 3 months to a year.

    What is a certificate with an example - 

When you deposit 50,000(money) and promise to leave it in the bank for year months in order to earn a higher interest rate, that paper you get representing the deposit is an example of a certificate of deposit.

We Discussed All Details About saving account. If you want to add something please follow and comment.

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