4 Ways to Save Your Cash at the Bank
Interest Rates (Photo credit: 401(K) 2013)
Money is very precious therefore it should be utilized carefully. Mismanagement of money can change your life on whole. You can put yourself into a big trouble if you do not make proper use of money. Savings are very important to live a good standard life. Urgent money requirement can create trouble and you might end up by taking huge loans. This will disturb your monthly budget. By saving money you can fulfill all your desires such as buying a new car, pursuing higher education, planning for a family vacation, etc.
Savings can be done through many ways and some key facts are mentioned below:
a. Open a Savings Account: nowadays people are opening the savings account through various sources to save money for short and long period. The best feature of this method is a person can access the account anytime and can withdraw the amount when required. Once the account is open with any bank the user will get the interest on their savings. If you make a habit to deposit money into savings account then your money will get increased automatically by getting good interest. With proper self-discipline you can access this account for longer time. However, there are conditions with the savings account like you have to maintain a minimum balance and if you do not meet the conditions the bank will charge penalty and deduct certain amount.
b. Checking Account: this account has more interest rate comparing to savings account. You can maintain the account with minimum balance and you can deposit and withdraw the money on daily basis. Checking account is having feature of free checks, unlimited withdrawals, and ATM access. You can also make the bill payments online with this account.
c. MMA (Money Market Accounts): with this account you can save money for longer period and you will also get the high interest rate on MMA account. However, the rate of interest is depending on saved amount in account. If you manage the higher balance than you will get more interest.
d. Deposit Certificates: you can get the Deposit Certificates and its short form is CD. It is like you are giving loan to finance agencies for a decided time. The normal period for CD accounts is between 30 days to 5 years. The interest will get increased according to time frame means if you get the certificate for long period you will get higher interest for the money.
If you invest your money with insurance companies you will get assured higher interest comparing to banks. As there are many companies available offering good interest on different accounts so you can check the offers and can plan your investment accordingly.
There are many methods that can be used for finance savings like you can cut your expenses. If you have smoking or any other habit then you can limit them. Its better for you and your family to stop illegal activities. You can limit your smoking addiction by using V2 cigs. You can refer the v2 cigs reviews http://www.electroniccigarettetree.com/v2-cigs-best-electronic-cigarette-2011 to learn more about this product.
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Category: Financial Planning
