Investing In Bank Accounts Part 2
Singapore Savings Account Rates continues part 2 of the series of articles on 'Investing in Bank Accounts' this February 2010.
The written words are obtained from MoneySense, a national financial education programme.
Investing In Bank Accounts (continue)
3) Safe and convenient
a) Using bank accounts is a safe and convenient way to help you manage your daily cash flow. Your money is safe in a bank account and you have complete control over how to manage your money.
b) You can keep track of your savings and spending transactions, pay bills, make purchases and receive money, such as cash deposits, cheques and direct credits of your salary through your bank account. You can do all these activities either by visiting a bank branch, ATM or kiosks, or transacting through the phone or Internet. Instead of keeping excessive cash on hand, depositing your money in the bank allows you to manage your money better as you are less tempted to spend unnecessarily.
4) Cheque Clearing Process
When someone gives you a cheque, and you deposit it into your account, your bank has to send the image of the cheque to the other bank to collect the amount of the cheque, so that the proceeds can be credited to your account. This process of collecting funds by one bank from another bank is called cheque clearing.
Because of this, when you deposit a cheque into your account before the cheque clearing cut-off time stipulated by the bank, you will only be able to utilise the funds the following day after 2:00pm.
If the cheque is deposited after the cut-off time, the cheque will be considered to be deposited the following working day and funds will only be available the day after.
For further reading on other consumer guides, please log on to the MoneySense website at www.moneysense.gov.sg
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Singapore Savings Account Rates.