Financial investment is an obvious way to ensure you are prepared for the future. There are many ways to invest your money, but in order to do so wisely, you first have to be intelligent about the choices you make. A savings account arguably offers one of the best ways of safely investing your finances. Obtaining one from either a bank or credit union is usually the most sensible option, since they offer you far more protection and stability – like interest or insurance – than keeping your money under a mattress, or investing in the stock market, for example. And, in light of the current financial market, savings accounts are said to be experiencing something of an upturn in terms of interest rates, with some experts believing the days of low paying interest accounts are firmly in the past.
Banks generally offer two types of savings account: a basic savings account and a money market account. Within these, there are a number of different packages, which have been tailored to fit specific needs. Although interest rates are lower on the basic savings account, it typically has a low minimum balance requirement, for example 1 and should allow you to withdraw money whenever you wish. Money market accounts have the advantage of offering higher interest rates, but as a rule, there typically has to be more money in the account. You could additionally be limited to the amount of withdrawals you can make each month and it is, therefore, preferable when you have a lump sum you want to save over a period of time. The appearance of online or internet banking in the 1980s, which grew rapidly over the ensuing decades to become firmly entrenched in today’s financial marketplace, has seen a rise in the number of e-savings accounts offered.