what is a savings account?

Rise and Grow

What is a saving account?

A saving account is an account that allows you to deposit your money, safe with the bank ,so you don’t have to carry it around with you and allows you to earn some interest. Money can be deposited in the following accounts;

Regular savings account. Here, you will earn interest and also will be able to access your funds more quickly. It requires consistency in saving as you will be allowed to save a certain amount each month or day depending on your source of income, for example at www.rg.co.ke you are only required to deposit  a minimum of 50 Kenya shillings

Money market account:  This one earns you higher interest rates than the other accounts. Deposits are higher than the regular savings accounts and a fee is charged if your balance reaches below the minimum amount depending on the institution and it also may provide check writing privileges and ATM access. It is advantageous to those who need a short-term, relatively safe place to keep cash

Certificate of Deposit– It is a savings product that earns interest on lump sum for a fixed period of time. Usually has the highest interest rate among savings accounts but no access to funds.

Advantages of savings account include:

-It has potential to earn interest.

-It is easy to open and access. At RG Sacco, you can open and access your account’s details directly online

Disadvantages are;

-Minimum balance requirement. If the account falls below, an account holder can incur charges.

-Lower interest rate than other accounts.

-There are no tax benefits in putting money into a saving account.

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