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How to Make Use of Your Savings Account to Meet Your Financial Goals?

Guest posts | 22 Feb, 2018  | Follow Author | Add to my Favourites 
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When used properly, a savings account can be a valuable tool to advance your financial goals. Whether you want to save for an emergency or a down payment on your dream home, a savings account can be the springboard that helps you meet those dreams. Moreover, the right type of savings account can not only keep abreast of your finances but also make the money in the account, work harder. Here are some types of savings account that have captured the imagination of people around the world and how you can use them to reach your financial goals.

Online savings accounts

If you are too busy to visit your bank on a regular basis, consider opening an online savings account. Online savings accounts, share all the features of regular savings account and then some more. For instance, you will no longer have to visit the bank for routine transactions because now you can do those online. Sometimes, these accounts also offer a higher rate of interest, in addition to lower fees, compared to regular savings accounts.

High-interest rate savings account

If you really want to make your money work for you, look for a high-interest savings account. For instance, Kotak Bank offers savings accounts with interest rates as high as 6%. Such an account not only earns yourself money, of the unused balance but also makes it easy to access the funds when needed. Some banks also give a high rate of interest for a certain period as an introductory offer.

Bonus saver/incentive accounts

On some accounts, banks are willing to pay a higher rate of interest when the account meets certain conditions – for example, when the account balance reaches a certain amount, or if you do limited withdrawals or if you put in minimum monthly deposits. If you are a committed saver, who makes regular deposits, then a bonus saver account can be very useful to you.

Senior citizens' savings accounts

If you are close to retirement, consider putting your money into a senior citizen savings account. Some banks offer senior citizens, a fixed rate of interest up to a certain amount. The interest can be withdrawn every month. This not only protects you from market fluctuations but also guarantees a fixed income every month, so you don't have to worry about your expenses.

Savings and investment accounts

This type of account works both as a savings account and an investment account. Each month, a certain amount will be deducted from your account and invested in a systematic investment program or recurring deposit. You may also have to invest in a term deposit, where the sum is several times your average monthly balance. This account will be connected to a demat account, so you can also invest in stocks if you want.

Choosing the right type of savings account is very important to reaching your financial goals. The best thing you can do is compare various types of account and learn about the pros and cons of each type of account. When you compare accounts like this, some of the things you should look at are rate of interest offered, access options, how the interest is calculated, additional features and terms and conditions.

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. The author does not accept any liability whatsoever arising from the use of any of the above contents.

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