Savings accounts – the classic way of investing money
Some of you might have already had one when you were little: A savings account is a classic amongst financial products and is still often opened by parents or grandparents to save money for a child’s future. While a couple of years ago people still had to present an account book when planning to deposit or withdraw money, you can now manage your finances with a bank card.
As you might have guessed from its name, a savings account is not made for payment transactions but to accumulate your savings. Therefore, a savings account is a type of investment. Normally, cash withdrawals and deposits can be made at any time, however, there might be a monthly limit.
A savings account is a very secure type of investment. However, the interest rates you will receive for the money on your account are very often lower than the ones you might get for other types of investment, such as an instant access savings account or fixed deposits.
As banks normally don’t charge a fee for opening or having a savings account, a good way of finding the best savings account is by looking at the interest rates. Therefore, it is worth comparing different offers with each other before opening an account.