What is the purpose of a savings account?

Answer 1

Opening a bank account is a great idea for any person seeking to save money. By opening up a savings account, one is truly making a financial decision that will benefit him or her for the rest of one's life.

Opening up a savings bank account is a great idea because it will force one to set aside money from a paycheck. It is always a good idea to keep money separate from a checking account, rather than keeping all of one's money together in one account. A person may be easily tempted to spend a lot of money, if he or she sees thousands of dollars sitting in a checking account. By setting aside money in a separate account, the temptation to spend it directly will lesson.

A person will also be able to gain interest on any money that is put into a savings account. A savings account allows a person to save money and earn money at the same time. With a checking account, a person is usually not able to gain interest on money. A person should also seek to open up a money market account at a bank, if that sort of thing appeals to a person. A person will be able to earn 4% interest usually within a money market account. Many savings accounts offer very low interest rates, due to the state of the financial market and the tough economy. However, money markets have been steadily increasing their interest rates, which means the consumers benefit and are able to build up greater savings. This is truly one of the best ways a person can build up savings in a way that is easy and does not require a large investment of time or even other funds.

Answer 2

A Savings Account is a type of account that is designed to promote savings among the general public. You can deposit and withdraw money from this account but at the same time the bank offers you an interest on the money deposited into the account.

Answer 3

Saving money. Obviously