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