Savings account makes the amounts deposited. Depending on the rates of return, they provide and the size of the investment occupied. Discover how they do it!
Making your savings grow alone is not a fantasy. Through the use of savings accounts, most banking institutions can offer protection to the money that you keep each month. In addition to making it invest. So, you get an additional percentage of the earnings that you initially deposited in your account.
This is how savings account work:
Select the Account You Want to Open
This will depend on the banks you have in mind to save your money. Since each one has different types of savings accounts available. Despite this, it is important that you ask the right questions to make an informed and beneficial decision.
Some examples of important features you will want to research before choosing a savings account are:
- Commission for opening: that is, how much does the institution charge for contracting the savings account service.
- Minimum opening amount: this refers to the amount for which you must make the first deposit to activate your account.
- Minimum monthly balance: Sometimes, savings account require a minimum amount of money to serve as collateral. This avoids charging services such as account management.
- Commissions for account management: The bank discounts a moderate amount of money as payment for the use of your account. Consider the amount and compare it with your savings to avoid this discount exceeding them.
- Additional services: Depending on your needs. Make sure that the bank provides you with a checkbook or card. So that You can make transfers of money without additional commissions.
- Rate of return: The rate of return is an amount that is added to the amount of money invested. It is established by each banking institution. It can play in your favor. Since, depending on the amount and term of your investment, it will increase savings.
Deposit Savings and Choose What Percentage You Want to Invest
The rate of return is called the amount of profit or loss. That is, when making an investment for a certain time.
Banks use these rates to increase your money as compensation for giving them the authorization to make investments with savings.
A bank in which you choose to open your account and deposit your earnings. It will provide you with a list of rates and terms. You can invest, as well as get benefits that this will bring you.
Likewise, depending on the percentage of the money you have available. The bank will let you know the performance that your account will generate.
Although it may not be much. In the end, the rates of 2 or 3 percent will end up increasing your savings.
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Pick the Term in Which Money Will Be Invested
These terms can vary from days, weeks, months and even years. Depending on the term, you decide to authorize the bank to invest your savings. The rate of return will be adjusted and will generate more long-term profits.
It is always recommended to make investments for at least a year. Since you can ensure that savings are being used and gaining value as opposed to just having them stored in a piggy bank.
Although, if a year seems too long. There are short deadlines that could also generate profits. You could spend your money immediately if an opportunity arises.
If Necessary, You Have Your Money at the Time You Want
As mentioned earlier, some banking companies provide their customers with ways to use their savings quickly and easily in emergencies.
It may be that having a percentage of it invested, the institution will charge some penalty for withdrawing it earlier.
But, it is not mandatory that you stay in the bank all the time. It is likely that you can use the checkbook or debit card. They provide you to dispose of your money.
In extreme cases, such as the fact that your bank goes bankrupt and closes. You should be calm. Since savings are always protected and guaranteed by the Institute for the Protection of Bank Savings.
Making your money move instead of being static and available to spend at the least indicated time. It will help you create greater awareness of your earnings and plan to meet your goals.
In these times, saving is a necessary activity. Whats a better way to do it? Just by savings accounts to protect your wealth and future.