Southbourne Group Singapore, Tokyo Japan on Investing Places to Stash Away your Cash
If you have money you want to put in a financial institution for a while then you must choose the right bank that will satisfy your own best interest and don ' t just pick the one knocking in front of your door.
The best short term savings account for you is the one that will satisfy your needs on the following areas:
How often will you access your account? And how would you want to access it?
Does the institution offers the highest possible rate for your money? If not, look for other financial institutions that can give a better deal.
How would you want their service? Do you like a personalized service or you are more of a Do-It-Yourself client?
If certain circumstances arise and you want to change your plans, how bad their penalties are if you’ re planning to get you money back as sooner as possible?
Let ' s have an overview of some short term savings you might want to consider. SAVINGS ACCOUNTS
Back in the days, savings account( also called passbook account) was the most popular choice for short term savings. Although savings account offers low minimum deposit and insured by FDIC, the return rate here is very low.
CHECKING ACCOUNTS
Unlike savings account, checking accounts are designed for withdrawals and deposits but typically do not earn interest. The convenience on having a checking account is that you can access your money with the use of an ATM or check anytime and anywhere as well as transferring to or from other accounts. It is also 100 % covered by the Federal Deposit Insurance Corporation( FDIC) which means, depositors can still get their hands on their money when they need it, especially in times of financial turbulence. Just don ' t expect a high return value on your deposits, if there ' s any, it surely is very minimal and many checking accounts demands for fees and minimum balances under the account.
HIGH YIELD BANK ACCOUNTS
Today, there are many financial institutions which offer significantly high-yield savings and checking accounts. In here, you can withdraw and deposit any time without waiting for a time period to withdraw and it offers better rates than the traditional savings and checking accounts with the same FDIC insurance.
The caveats in this type of savings are that bare bone banks have no ATM / debit access or checkwriting permissions which can be a problem if you need to generate cash immediately. In addition, you have to consider the introductory rates offered because these alluring rates are usually temporary.
MONEY MARKET DEPOSIT ACCOUNTS