Today I'm going to show you the definition of a savings account and where you can apply for one with the highest interest.
Savings accounts are good for storing your money while earning interest on the balance saved.
Without wasting your time, let's get started.
Savings Account Definition
Savings accounts are offered by most banks in South Africa.
It's a basic banking account that allows you to save money securely.
And these banks offer various types of savings accounts that pay interest differently.
And the best part...
Savings accounts are offered free of charge - no service and monthly fees.
And here's how banking institutions are able to pay you interest on your savings account.
Banks use these accounts as a source of income, in such a way that they'll take your savings and lend to someone else. That's how you get to accumulate interest on the money stored in the savings account.
How Much to Keep in Your Savings Account
Remember, this is a place to keep your money safe but not an investment account.
Some accounts require a minimum deposit however you can save up to any amount you want to keep safe.
Perhaps, you have a savings goal - this will determine the amount you can keep in your account while at the same time earning interest.
And in order to enjoy the benefits of savings accounts, you must store your money for a longer period of time.
Savings Account VS Money Market
What's the difference between money market funds and savings accounts?
Both of these financial services offer different benefits for individual needs.
However, what differentiates money market funds with savings accounts is access to money you have invested. The money market offers the best options for accessing your funds when you need it the most.
It basically just depends on your savings goals.
Money market accounts also pay the highest interest as compared to savings accounts.