Saving's Account


Recommended Posts

can somebody explain how a bank saving's account works. I mean like other than the obvious, like yea your supposed to save money in it, but like do you get interest in what u have? what happens to that money, and what not? How is it different from a checking account?

Link to comment
Share on other sites

they USED to make it so that you couldn't withdraw from it, and it probably gave an extra .05% interest. Now its all the same.

whats the same??

Link to comment
Share on other sites

savings account....you get intrest for having the money in it. checking account...no intrest and you can write checks based on the funds in it. You put your money in your savings account and then you put whatever money you don't want to save/need to live off and put that in the checking and use checks and/or debit card to buy things based on the funds in the checking account.

Link to comment
Share on other sites

Well, there's really two types of saving accounts.

1) Regular savings account where you put money in, get like .05% more interest (like bayrider said) in exchange for not being able to write checks for that account (you can still withdraw from ATM's)

2) Locked savings account where you get significantly more interest in exchange for promising that you wont withdraw a penny. You would usually invest like $5000 in there for safekeeping and you say how long you will keep it in there (example: 5 years) and the longer you promise to keep it in there, the higher the interest rate is. however, if you withdraw the money early (like you promise 5 years but take it out in 4) you'll get much less interest (or in some cases, no interest). this one is usually for middle aged people who want to save some money for retirement.

Link to comment
Share on other sites

This topic is now closed to further replies.
  • Recently Browsing   0 members

    • No registered users viewing this page.