Banks have a couple of accounts tailor made for their clients; when opening a bank account at any bank, consultants will interview a customer such that he (consultant) can offer an account that suits the needs of a customer. In this regard, customers should also arm themselves with information pertaining different accounts offered by a bank of their choice before they visit the bank; that way they are in a position to understand what the consultant will be saying rather than make a rushed decision which will cost them in future.
One of the simplest accounts offered by banks is a ‘Savings Account’; this account enables consumers to store surplus cash in a secure location while he earns interest on the balance.
Below are some of the common characteristics of a savings account:
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It provides for a fee in the form of a variable rate
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It’s not possible to transfer money from a savings account directly to third parties with the same bank
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It has a maximum withdrawal amount per period
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It has bonus interest rates
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It normally has promotional interests which are offered for a limited time but usually doesn’t come with restrictions
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It has a minimum opening deposit
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It allows automatic salary deposits
Meanwhile, there are different types of savings accounts that are found in South Africa and these are:
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Online savings account: It’s a great way to save as you can make savings from the comfort of your home
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Children’s accounts: They allow you to save for your children such that they will develop great financial habits when they grow up
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First home saver accounts: These are designed to save for your first home
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Cash management account: There are for people who earn large incomes and this type of account earns you high interest rate