Keep your money safe with these bank accounts
Where to start managing your finances better? Where to keep extra funds and still earn without actively investing? These are some common questions we encounter in our day to day lives, managing finances has become easier with rising number of digital channels and mobile banking. But the offerings of financial institutions remain the same, here’s a list of four banking accounts which you must know to have a clear picture of where to keep your funds.
1. Savings account
As the name says it is an account where your savings can be stored, banks often pay interests on these types of accounts. A savings account is convenient and reliable way to save money, this account is easily accessible for your short-term needs. In comparison to current account, this account limits the number of withdrawals that can be made in a month, has a lower minimum balance compared to a current account.
There are various types of savings account, family savings account, savings account for women, children. Aside from regular savings accounts these accounts are designed to accommodate the needs of different individuals.
2. Current account
A current account in its essence is a wallet in form of a bank account, as it gives you the same access as a wallet, with differential being security and reliability. This type of a bank account has no limit on the number of transactions one can conduct in a day, this account also features an overdraft facility: withdrawing more than the available funds in your account. In contrast to a savings account this account requires a minimum balance and offers low to zero interest on the funds.
3. Fixed deposit account
Earning and saving money isn’t going to make anyone rich, which is where fixed deposit accounts come into the picture; this account is where the funds you decide to lock in a set period earn interest. There are two main types of fixed deposits. Recurring deposit account is where you can set your money for a fixed period earning a fixed rate of interest, at the end of the tenure the principal amount and the incremental amount is credited to your account. Traditional fixed deposit account is where you lock your funds for a set duration, however the interest rate is variable.
4. Gold investment account
Unlike other forms of accounts gold investment account as the name states it is an account for investing in gold as an asset. Gold investment acts as a hedge against inflation, during inflation the value of the currency goes down and as observed over a long time the value of currency depreciates in comparison to gold. Another important aspect to considering gold as your investment is its tangible nature, just like buying property or investing in real estate.
Now that you know about the different types of bank accounts go out and research which bank’s offering is the closest to your needs. All major bank’s have their account opening journeys are fast tracked, but there might be some hidden charges in the fine print. Make sure to invest your funds early so that you can reap the benefits later.