Savings account is an option in which an individual can keep or save money through a bank or any financial institution. Aside from the convenience of accessing your money anytime you need it, you can also take advantage of the interest that it offers.
Savings account basics
Unlike checking account, a savings account prevents the depositor to withdraw or make several transfer of money. The bank restricts the number of withdrawals that the depositor can make every month. But, it is required to maintain a minimum balance to avoid penalty.
Opening a savings account can help in many ways not only in the present but also for future use. For some people, maintaining a savings account is the key to build your wealth. The interest accumulated in your account will grow over time.
You can also use the money in your account as an emergency fund. This makes sense of setting aside a fraction of your income for emergencies.
There are two types of savings account that you can choose to open. You can open an ATM savings account or passbook savings account. The former allows the depositor to do deposit transaction either through machines or over the counter. But, you can withdraw through ATM.
The latter type of savings account requires using a passbook that you can present when making deposit and withdrawal transactions.
If you’re planning to open a savings account in the Philippines, there are several banks that you can choose from. These banks offer different options of savings account. Banks include BPI, BDO, Metrobank, Union Bank, Citibank, Security Bank and Sterling Bank.
On the other hand, there are other banks where OFWs can open a savings account. The options of savings account that an OFW can open include PNB OFW Peso Account, BDO Kabayan Savings, BPInoy Savings, UCPBs U-Remit ATM Savings and Metrobank OFW Peso Savings Account.
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Opening a savings account is very easy as you can do it by going to bank of your choice. Make sure to bring all the required documents and complete the application form. You’ll be required to deposit the minimum balance and wait for a couple of days before the account is activated.
Some banks allow online transaction when opening a savings account. You can also download the application for from the bank’s website and fill it out before going to the bank.
Difference between savings account and checking account
As mentioned above, a savings account is also known as a deposit account. The account holder can keep the money in a bank and at the same time allows to earn interest.
But, checking account is commonly used by business communities and firms. It provides convenience in making daily transactions like making purchases or paying bills. However, the interest rate is smaller than the savings account.
Keeping your money in a bank through a savings account is a smart decision. But, before opening an account make sure to check the reputation of the bank. As much as possible, choose a bank that doesn’t charge higher fees.