Money held in a typical savings account is the most liquid form of holdings after cash.
A savings account generally allows its holder to carry out a limited number of transactions and free transfers. For its part, a checking account generally offers more freedom when it comes to writing checks and often gives the right to an unlimited number of withdrawals.
Savings accounts pay less interest than bonds and treasury bills. It is therefore not recommended to keep money there for long periods of time. Savings accounts are generally used to store money that is not intended for current expenses.
The advantages of having a savings account
One of the main advantages of having a savings account is liquidity; funds deposited there are accessible 24 hours a day at local branches, through ATMs or on the Internet.
Savings accounts can also be useful for putting money aside, for certain expenses or for achieving long-term goals, for example, accumulating a down payment for the purchase of a home. or future vacation.
You can also use a savings account to build up a cushion in the event of unforeseen events, such as job loss or illness.
Money deposited into a savings account will typically yield a modest return of 1% to 2%, on average.
Opening a savings account
It’s easy to get a savings account, and you don’t have to go through a credit check. It’s a safe way to keep your money safe in a bank.
To open a savings account, all you need to do is go to any branch and show your ID.