Savings Account

2014 Words 8 Pages
How will you be living 10-20 years from now? Preparing yourself for the future can be hard to do. You 're not sure of how your life is going to be at that time but you have to make decisions about it now. A major topic that has to be looked at as how your money will be saved and handled. There are two different types of methods that you can use when planning to save and increase your money. Having a savings account and investing in real estate can both be options. Due to the fact that the process and structure of how a savings account works and investing in real estate, they will bring up some similarities and differences. Having a savings account and making an investment is different. It’s imperative to know the differences in order to …show more content…
With savings accounts there are different types that you can choose to have. Four types of savings accounts are a Regular Savings Account, Money Market Accounts, Certificates of Deposit (CDs), and Automatic Savings Plans. A regular savings account is very similar to a checking account except you can not write checks. This type of savings account is the easiest to establish and to keep. Regular savings accounts have a minimum balance required. Money Market Accounts provided a very safe place to keep your money. This account is also a type of investment but it is insured by the FDIC. There is a high minimum balance. The interest rates are higher than the regular accounts. This type account has a limit on how many withdrawals that you can make. The next type Certificates of Deposit you put your money into a savings account and set a date for how long it will be in there. While the money is in there there will be interest rates that will increase the money that is in your bank account. The downsides to this is that if you take out your money before the date that you set you will be penalized. The last type of the of savings account is Automatic Savings Plan. This plan is for people who are not good and saving money, Money from your checking account will be automatically put into your savings account. Your savings account will also have an interest rate. With all these different types of savings accounts there are many different routes that you can choose to take. When choosing a savings account it depends where you are looking for and what you want. When choosing a savings account it is an independent choice and will differ per

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