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Expectations As well as Results When You Compare Family savings

Today the average person, if they live in the Americas or perhaps Europe, Australia or Hong Kong, are keeping their particular money in some sort of banking account or other. However, there are several types of accounts, and for this reason, it is important that we examine savings account alongside other accounts.

For the inexperienced there are usually just two choices of accounts that they choose between. Usually they’re going to have either a saving or a checking account. Let us compare savings account alongside a checking account.

With a savings account you simply have a devote which you can \”park\” your money until you decide to do something from it. This \”something\” can mean investment or it can mean pulling out the money and spending it, or simply \”letting this ride,\” to use gamblers’ parlance. Gamblers are mentioned as a result of an important aspect that a lot of people with their money in a account rarely think about: that by leaving their money in a traditional savings account, they are losing their particular money by letting it dwindle to inflation as well as other unsavory aspects of the pecuniary planet.

To illustrate, let us consider Boris. The (true) account runs that Boris was obviously a successful biologist in the former Soviet Union. While Boris was not a rich man, he did well for themselves, and shortly after the Ussr broke up into Russia and other countries, Boris and the wife decided to go on to San Diego, in the United States. Now Boris had a tidy sum of money on your bottom line that he didn’t must bring with him or her, particularly as he had a friend that could’ve used the money, Andrei. And so to Andrei the money went. Though not a fortune, it was adequate money to purchase a small bike. Within a year, due to the problems of inflation, the identical amount of money was only adequate to purchase an frozen goodies.

While this example may be a bit extreme, it is important when you compare savings account to some checking account or other form of account, for factors that will be clear shortly.

When we compare savings account to a checking account we find that a checking account is actually worse in that it offers no interest whatsoever, but at the same time it will offer a bit of a buffer to making payments, as cheques. These tend to help not only in making payments simpler, but also when you’re simply two days from receiving payment, have no money in the bank, and have a payment that must be paid today. (Of course, this isn’t recommended, as it is totally illegal, though it can tend to happen, also to help.) So the decision will be yours. Choose wisely, or even choose to split your money, open equally accounts, and revel in the additional benefits.

Comments: 31

  1. Kassandra February 13, 2013 at 5:16 am Reply

    I have around £25,000 that I would like to put away for maybe 6 months to a year, into an account that pays interest MONTHLY. I don’t want to invest it or have it tied up for a set amount of time incase I need it (the money is for a deposit for a house). Does anybody know any good savings accounts? (I don’t mind if it’s a 30 day notice one, but dont want any longer than that). Many Thanks

  2. Sallie February 23, 2013 at 11:08 am Reply

    My company has two credit unions, however, I live in NY, and the closest credit union branches are in NJ. There are no branches near where I live.

    What would be the advantages of joining my credit union and would it even make sense considering I don’t live near a brach location? Even if it’s a savings account?

    I currently bank with Bank of America and am not completely satisfied. I’m also considering Wachovia, Citibank or possibly Chase.

  3. Wilmer March 7, 2013 at 12:47 pm Reply

    I am a 19 year old college student and i need a credit card. I work at wal mart and i cash my checks for free. So that means i don’t have a checking nor a savings account. Can i still apply for a Credit Card? If so which kind please let me know.

  4. Holli September 3, 2013 at 9:12 am Reply

    I’m going to England next week and I think I’ll need about 2,000 British pounds. What is the best way to get the money? I have a Mastercard, a US bank checking account, and an HSBC savings account (with atm card) if it makes any difference.
    Thanks in advance!

  5. Gertha October 4, 2013 at 12:49 am Reply

    I recently got a check from Allstate for pain and suffering. I was wondering if I would be able to start up a checking account at US bank with it, and what I would need to bring with me?

  6. Joellen October 5, 2013 at 12:58 am Reply

    I would like to do better with saving my money. I have a retirement 401K and money purchase pension plan through my employer, but would like to work toward saving at least 6 months salary for emergencies. What is the best way to save my money so that it gains interest at a good rate, but is accessible if I need it? Savings account, money market, CDs, or something else? And can anyone recommend a good website that compares interest rates of different banks? Thanks.

  7. German November 17, 2013 at 10:45 am Reply

    I’m looking to open an online savings account- or at least one I can access online. I’m not opposed to actual branches either.

    What are some good online banking companies to open savings accounts for my kids with higher interest rates? What are your good and bad experiences with the company you recommend?

    Thank you!

  8. Hal November 27, 2013 at 2:35 am Reply

    We have 2 savings accounts and I am trying to figure out which one has the better interest rate. When i have a credit card account, I simply pull up the statement and the interest or APR is clearly listed on there. Well, with my savings statement it shows an APY, but it varies every month (I guess it depends on the amount of money that’s on the account maybe?)
    How do I find out the set interest percentage so that I can compare between the two accounts?

  9. Bryce December 23, 2013 at 5:28 am Reply

    Alrite, so I am starting to save money up for a car and college and I’m putting money in a savings account so I make a little interest. Ally was the beat I could find but it’s online savings and I don’t know what that means. Can anyone explain what iris and everything.

  10. Thuy December 23, 2013 at 11:51 pm Reply

    Shorter-term treasury bills are earning ~1% these days.

    My money market savings account is earning ~3.5%. It’s been at this rate, or higher, for years. Since it’s FDIC-insured, its credit risk isn’t substantially more than that of a treasury bill. And, it’s more liquid.

    So why would someone put their money into treasury bills?


  11. Lorna January 17, 2014 at 12:16 am Reply

    Lets say I deposit $1,000,000 into my savings account, how much interest do I get? Does the interest come in monthly?

    Would the monthly interest come in monthly and go into my chequings? or how does it all work.

    Im just wondering if I had a million dollars could I invest it into savings and live the rest of my life worry free 🙂
    yeah you do. interest savings account. haven’t you heard of them before

  12. Pedro January 30, 2014 at 8:42 am Reply

    Just a hypothetical. Please be realistic. We’re not millionaires. The person who would be getting the home with me has excellent credit and an impeccable track record of paying things on time! What if the house was $100,000… He makes $40,000 a year and I make $21,000 a year.. What should be in our savings account?

  13. Joey February 1, 2014 at 11:31 pm Reply

    Is there a website where i can view the best online savings account interest rates to date? I want to open one to start saving some money, but i want a really good rate. Thanks!

  14. Allen February 21, 2014 at 3:39 am Reply

    I’m a 20 year old college student trying to learn how to be smart with my money. I’m interested in learning good ways to save and invest my money.
    I’ve saved up about $800 in a savings account right now, but I receive only 0.25% interest on it and I want to get more. I recently read a blog that recommended ING Direct and checked out the website. It looks good, but I have so little experience with banking and investment that I’m afraid to take risks with my money (college student = poor/scared to lose money). So here are a few questions, feel free to give me any more advice:

    1. Is ING saving or investment? Are there risks?
    2. Do they only have one type of account?
    3. What are CDs and how do they compare & contrast with ING?
    4. What should I be doing with the money I’m saving?
    Hey guys, thanks for all the feedback. Since so many of you were so kind I’ll let the community pick best answer.
    Thanks again.

  15. Karleen February 21, 2014 at 3:40 am Reply

    What is an online high-yield savings account and how does it compare to a traditional physical bank account? What are the benefits, what are the risks, and how do you find the best savings account? Any you can recommend?

  16. Thuy February 21, 2014 at 4:30 am Reply

    HSBC offers an online savings account with an APY of 3.50… theres is no minimum balance and no monthly maintenance fee… and it could be linked to a checkings account… and you would be given an ATM or Debit card that you can make deposits and withdraws…

    they also offer a traditional savings account that has only an APY of 0.10 you must maintain a minimum balance or else there is a service fee…

    so my question is what would make someone choose the traditional savings account over the online savings account… ?????

    there has to be something right? or else no one would open the regular savings account…

    i already tried reading all the info on the website and they don’t really advertise the CONS of the accounts…

    and im new to banking so it must be one of those general information that banks asume you already knows… right???

    can anyone explain… because this sounds to good to be true…

  17. Graham February 21, 2014 at 6:36 am Reply

    How can I get a savings account? What is the best back service to use.

    I am only 16 and I want to start saving with a bank account. I need more info on how to start. I know there is a trust fund and just a saving account for people under 18.

  18. Curtis February 21, 2014 at 6:36 am Reply

    I am starting a new job where I will have a $2200 deductible plan, but the company that I will be working for will be putting $2200 in the health savings account. Does this money in the account go towards dentist visit, perscriptions, etc? Once the $2200 is exhausted, then the normal health insurance kicks in, correct? I know it doesn’t cover dental, but with all of this money in the account, is it worth getting additional dental insurance? Thanks for any help.

  19. Robin February 21, 2014 at 1:53 pm Reply

    I just turned 18, so it has to be a bank that will allow you to open account at 18 (most banks do, I’ve only run across one local bank that you had to be 25).

    I would rather it be a well-known-ish bank, and preferably not an online-only bank (unless they have amazing rates and you have been with them for over 6 months without any problem whatsoever).

    Or if there is a website that spells out each banks deal?

    I already have a checking account at BB&T and another checking account at a small local bank.

    Oh, and the minimum needs to be around 100$ (maybe to $150?) or less.

    My financial situation (if you are interested or relevant):
    I have a job that I will be quitting for the summer to be a ‘nanny’ for $150/wk. I would like to deposit $50 bi-weekly into the savings account. I will be starting college next year, hopefully on a full scholarship, but I will still have a job. Money isn’t a desperate thing for me, just want to save some!

  20. Jerica February 24, 2014 at 8:10 am Reply

    This makes no sense to me as savings accounts now give out 1.00-1.15% APY while money markets give out about the same. I thought traditionally money markets give out better rates as banks want to borrow your money and hope that you make transactions in forms of checks. Please explain.

  21. Lanell February 27, 2014 at 8:24 am Reply

    Does anyone have one of these?? How do you like it compared to a regular bank account at a local branch??

  22. Maxima March 5, 2014 at 5:18 pm Reply

    Isn’t it all really the same? I only have a checking account. Do people normally put their money in savings accounts? I’m kind of confused. I guess it’s because from my last question, people had around $200 in their checking account. It doesn’t seem like a lot. So where do most people put their money? In savings or in checking accounts? Or in cash? Do most people put their money in a savings account? I thought people would have much more money than $200. What % of money does a checking account consist of compared to one’s financial posession overall?

    No need to freak out, okay? I’m slow and fat. I don’t have computer experience and it’s not like I’m going to hack into your account. Geeshh
    I know savings gives you interest, but it’s not that much. Which is better to have? Is it necessary to have both?

  23. Garrett March 11, 2014 at 9:40 pm Reply

    I had a checking account with chase back at the beginning of this year, haven’t used it since, but i’m sure there’s still like a dollar or two in the account, i’m also almost positive my debit card is deactivated, since I haven’t used it in about 6 months, (I still have the card) so i’m wondering, could I reactivate my debit card so I can use it for direct deposit, or do I need to start all over from scratch?

  24. Caleb March 11, 2014 at 9:41 pm Reply

    We now have the option to sign up for a High Deductible Health Plan with Health Savings Account and I was just wondering if this is the jist of it: We pay into the HSA each pay period and use this money for medical related expenses throughout the year – should we ever reach the $2500indiv/$5000 family deductible, insurance will began to step in?

    I am still looking into if we’d be saving money by taking this type of coverage, I just wanted to know if I was understanding the HDHP with HSA or am really of course. Thanks to any clarifications in advance!

  25. Francesco March 31, 2014 at 8:36 pm Reply

    I’m curious as to what the interest rates are for savings accounts in other countries than the U.S. Are they better or worse than over here?

  26. Towanda April 6, 2014 at 10:01 am Reply

    Right now im currently with PCFinancial, and I’m wanting to switch to a bank with a higher interest rate on the savings accounts, but at the same time not pay any to not much fee’s, any ideas?

  27. Miguel May 20, 2014 at 12:11 pm Reply

    The point of a savings account is to save up your money I know, but what bank offers what perks? Is there a website that compares or anything?

  28. Ara June 10, 2014 at 6:55 pm Reply

    I have £12,000 pounds sitting in an ISA. My bank Halifax just cut my interest rate to 3.11%. This seems a little bit low. But if I move some to a different ISA as far as I understand I can only invest £3600 before april.

    Meaning the rest will have to go into a taxable account (possibly negating any savings from a higher rate!)

    What would be my best move? I don’t need it all to be liquid, but I would like to have a few thousand to dip into just in case.

    Thanks for any recommendations…

  29. Cortney June 10, 2014 at 6:56 pm Reply

    I signed up for a savings account (ING Direct) that is working great for me, it offered me $25 just for opening it with $250 deposit. And it allows me to earn $10 thank you bonuses for accounts opened through a referral link I have that I can email to anyone. And the people I referred then got $25 for opening one.

    For the math whizzes out there is this a good deal since it offers 4.10% APY which is a little lower then other banks?
    And if not, what is the best savings account offered today? (without fees is a MUST)

    When I opened it I thought it was a good deal since it paid me out 10% the first day and has no fees.
    I have just heard so many GREAT things about ING tah I definately will be staying with them… Their customer service rep was so nice of the phone.

    SO if anyone reads this and wants me to send them a referral link to get $25 to start up a savings acount with them just email me…

  30. Delma June 10, 2014 at 6:57 pm Reply

    which bank has the highest interest rate for a savings account in nj?

  31. Eddie June 10, 2014 at 6:57 pm Reply

    Which bank would you recommend

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