Savings accounts are perhaps one of the most popular banking options, designed for all who believe in a ‘tomorrow’, today. A compromise between a current account and an investment account, savings accounts are a safe place to keep money for short periods of time. You can open a saving account at most banks, trust companies or even credit unions and relax for the rest of your life because your golden hen:

  • Is insured by the FDIC (Federal Depositors Insurance Corporation) for amounts up to $ 25,000.
  • Offers six withdrawals in a month
  • Waives the monthly Maintenance Fee in certain cases
  • Offers Bank Machine/Automated Teller Machine (ATM) access:  Swiping your bank card can help you make a deposit, pay your bills, swap money between your accounts and most importantly give you cash
  • Offers a direct deposit: Your Company can deposit your salary right into an account.
  • Offers Pre-authorized debits (PAD):  You can pay all your bills directly from your account.

Types of saving accounts

Passbook Account. In passbook savings account, the bank gives you a passbook or booklet that you use to record deposits, withdrawals, and the interest. Passbook account is FDIC insured up to $100,000 and $250,000 for retirement accounts. Generally it has low fees and no minimum balance requirement and a very low interest rate.

High yield saving Account. In These types of saving accounts you need to maintain higher balance in the account and higher interest rate the bank is usually willing to give you. You cannot use checks with this type of saving accounts but, you may be able to link it to your checking account for deposits and withdrawals.

American Express Saving Accounts

American Express Bank is offering a personal high yield saving accounts that currently has an annual percentage yield of 1.85 percent, Here Interest earned on the saving accounts is compounded daily and credited to your account monthly.

During the financial crisis of late last year American Express along with other financial institutions including other big companies like Morgan Stanley  became bank holding companies regulated by the Federal Reserve so that this company was to be able to collect deposits since the credit markets weren’t functioning during the crisis.

Saving accounts balance are insured by the FDIC for up to $250,000. Since savings accounts are variable rate accounts, the annual percentage yields can change at any time. As with all savings accounts you are restricted up to six withdrawals per calendar month.

We are highly recommended to you to you to study the bank before opening saving accounts and compare the other bank saving rates to get maximum benefit of your savings.