Finding the Best Rates of Interest on Savings Accounts

2007-03-08 10:33:40

( Financial )



The rates of accounts interest vary from the type of account that you operate. For current accounts, the rate of interest is usually low on your credit in the account and the bank charges for overdraft, which is seen as credit.

Another type of account is the fixed deposit. You tell the bank that you will give them a certain amount of money to be placed under fixed deposit, for a certain period of time. The longer the period the more interest you get. But the catch to such accounts is that you cannot withdraw your money in between that period without sustaining a heavy loss in the interest gained. However, you should note that these are high interest rate accounts, and because of being high interest accounts, thus they have the clause of “fixing” your money for a stipulated period of time.

So a savings account works out to be the type of account which most people go for. You will have the benefit of getting interest on your money, something a current account does not give and also the ease of not “fixing” any amount, or in other words the ease to withdraw money at your will, with out the bank setting guidelines for the amount that you can withdraw and when you can withdraw, which is the catch of a fixed deposit account.

The rates of Interest on savings accounts vary from bank to bank with small differences being present. So you will be looking for the bank which gives you that slightly higher rates of interest on savings accounts. A point to note here is that the calculated rates of interest for savings accounts are simple interest. On the other hand, fixed deposits give compound interest, in which the interest is added to the principle and calculated again.

The rates of interest on savings accounts are usually the best type of interest rates to look for. But bear in mind that fixed deposit accounts can also provide you with a good system for your investments.

Your money in a savings account is secure and interest is being given to you on the amount that you keep in the account. Plus, you have the freedom and ease of mind to withdraw your money at will. So look out for the bank with the best savings interest and invest.


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