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Savings Account Interest Rate Article
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Holding a Savings Account
from:Introduction
A savings account is basically defined as a bank account designed to help the customers set aside a portion of their liquid assets, while also earning a monetary return.
Offered and maintained by a series of commercial banks, savings and loan associations, credit unions and mutual savings banks, these accounts require that the amount deposited cannot be used directly as money, thus encouraging savings.
Features and Provisions
In most of the cases, such savings account requires that the funds be kept on deposit alteast for a minimum length of time, though some also allow unlimited access to funds. In other words, there is a limit on withdrawals, payments and transfers that might be performed through a savings account.
While some of the banks will not allow any transfer of money beyond this limit, the other will notify the account holder that such a regulation has been violated. Each of the savings account holders are offered an itemized list of all financial transactions, either through a passbook or through a bank statement.
However, withdrawals from a savings account are occasionally costly and at times much higher and more time-consuming than the same financial transaction being performed on a demand account. Though most of the savings accounts do not offer cheque-writing privileges, yet there are many institutions that refer to their higher-interest demand accounts or money market accounts as savings accounts.
Latest Developments
The introduction of internet into the world of banking has made the concept of high yield savings accounts highly popular. Available through virtual banks, such an internet savings account business model is based on an attempt to offer interest rates which are higher than those available at storefront banks. A few amount of retail locations along with low customer service costs through automated and computer systems makes such a business model quite effective. In fact, internet operated banking systems are highly effective and recommended if the customers concerned are well-versed with nuances of internet and are aware of how the system works.
Experts suggest that holding at least one of such savings account is crucial if you want to develop a consistent regimen of savings and investments. The stringent regulations of most of the institutions offering such savings account do not allow you to withdraw frequent or high amount of savings from your account, which indeed have a favorable effect in the long run. In fact, to encourage and attract a large customer base, quite a few of these institutions also offer special internet rates to specific age groups as well, such as youngsters.
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Savings Account Interest Rate News
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Passbook Savings Loans are Secured by Savings, CD Balances - Fox Business
Passbook Savings Loans are Secured by Savings, CD Balances Fox Business All have the same basic setup: You borrow money using your own savings account or certificate of deposit as collateral, while paying a much lower interest rate than you would on a credit card or unsecured personal loan. "They are another option for ... |
ING Direct scrambles to reinvent itself - Macleans.ca
 Macleans.ca | ING Direct scrambles to reinvent itself Macleans.ca It was an appealing prospect for Canadians who remembered the days of savings accounts that paid seven and eight per cent and were fed up that rates among the big banks had fallen so far. The high-interest savings account, which ING followed with ... Are Canadian parents good financial role models? 25% grade themselves a 'C' |
Home lender to dip into savings - NEWS.com.au
 TheMercury.com.au | Home lender to dip into savings NEWS.com.au Adam Beu, an analyst at financial research company Canstar, said potential customers should compare the terms and interest rates of the RAMS savings and transaction accounts with others in the market. "It's obviously a long-overdue approach by RAMS to ... RAMS expands into high interest deposit market Rams brand seeking deposits for Westpac |
The Death of the Certificate of Deposit: Will CD Rates Ever Rebound? - U.S. News & World Report (blog)
The Death of the Certificate of Deposit: Will CD Rates Ever Rebound? U.S. News & World Report (blog) Essentially, depositors promise to lend financial institutions a predetermined amount of money for a fixed time period in exchange for a higher interest rate than what a traditional savings account generally offers. When the CD account's term ends, ... |