Investing In Bank Accounts
This article on Investing in Bank Accounts is taken from MoneySense, a national financial education programme.
Singapore Savings Account Rates reproduces a part of it for the benefit of our numerous readers.
Before investing in bank accounts, you should be aware of the types of banking accounts and their suitability.
1) Types of banking accounts
Opening a bank account will help you manage your money to meet daily and emergency needs. At the same time, you can earn interest for your deposits with some types of accounts.
There are three main types of bank accounts, namely Savings, Current and Fixed Deposit Accounts. Their main features are tabulated below:¬
*If funds are required urgently you need to perform a premature withdrawal of the fixed deposit. A premature withdrawal may result in no payment of interest or partial loss of interest.
** Depending on the product features offered by your bank, you may choose to receive a passbook or regular account statements to keep track of your transactions and interest earned.
2) Which account is most suitable for me?
To decide what type of account is most suitable, consider your purpose of having the bank account.
If you are going to use your account for day-to-day money management, such as to pay bills, a current, savings or a combined current and savings account will be most useful.
If you are thinking of putting aside a sum of money for medium to long-term savings, then you may prefer to open a fixed deposit account.
For further reading on other consumer guides, please log on to the MoneySense website at www.moneysense.gov.sg
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