Welcome to Savings Guide
First Federal Savings Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Holding a Savings Account
from:Introduction
A savings account is basically defined as a bank account designed to help the customers set aside a portion of their liquid assets, while also earning a monetary return.
Offered and maintained by a series of commercial banks, savings and loan associations, credit unions and mutual savings banks, these accounts require that the amount deposited cannot be used directly as money, thus encouraging savings.
Features and Provisions
In most of the cases, such savings account requires that the funds be kept on deposit alteast for a minimum length of time, though some also allow unlimited access to funds. In other words, there is a limit on withdrawals, payments and transfers that might be performed through a savings account.
While some of the banks will not allow any transfer of money beyond this limit, the other will notify the account holder that such a regulation has been violated. Each of the savings account holders are offered an itemized list of all financial transactions, either through a passbook or through a bank statement.
However, withdrawals from a savings account are occasionally costly and at times much higher and more time-consuming than the same financial transaction being performed on a demand account. Though most of the savings accounts do not offer cheque-writing privileges, yet there are many institutions that refer to their higher-interest demand accounts or money market accounts as savings accounts.
Latest Developments
The introduction of internet into the world of banking has made the concept of high yield savings accounts highly popular. Available through virtual banks, such an internet savings account business model is based on an attempt to offer interest rates which are higher than those available at storefront banks. A few amount of retail locations along with low customer service costs through automated and computer systems makes such a business model quite effective. In fact, internet operated banking systems are highly effective and recommended if the customers concerned are well-versed with nuances of internet and are aware of how the system works.
Experts suggest that holding at least one of such savings account is crucial if you want to develop a consistent regimen of savings and investments. The stringent regulations of most of the institutions offering such savings account do not allow you to withdraw frequent or high amount of savings from your account, which indeed have a favorable effect in the long run. In fact, to encourage and attract a large customer base, quite a few of these institutions also offer special internet rates to specific age groups as well, such as youngsters.
1
First Federal Savings News
Budget obstinacy beggars belief - The Age
 Sydney Morning Herald | Budget obstinacy beggars belief The Age, Australia - The Budget involves $7.3 billion in savings to create a much stronger Budget surplus. The surplus will be invested in long-term infrastructure development, ... Luxury tax hike saved by the bell |
McCain, Obama Need to Talk About the `D' Word - Bloomberg
McCain, Obama Need to Talk About the `D' Word Bloomberg - Even withdrawals from most 401(k)-type accounts are taxed at full federal rates. Savers shouldn't be treated like chumps, but like champs. ``Without savings ... |
Is my bank safe? - Santa Rosa Press Democrat
Is my bank safe? Santa Rosa Press Democrat, CA - Sonoma County is home to five banks: Atlantic Pacific, Exchange, First Community, Sonoma Valley and Summit State. Luther Burbank Savings, a savings ... |
America's mortgage giants Suffering a seizure - Economist
 Times Online | America's mortgage giants Suffering a seizure Economist, UK - First, Fannie and Freddie will be taken into “conservatorship”, a watered-down form of receivership, by their revamped regulator, the Federal Housing ... Full Statement of Treasury Secretary Henry Paulson on Fannie ... |
Sunday, Bloody Sunday - Newsweek
 Boston Globe | Sunday, Bloody Sunday Newsweek - For years, as scolds warned of the dangers of a low US savings rate and a massive trade deficit, optimists pointed out the bright side. ... Video: Paulson:'We Had No Choice' Fannie Mae and Freddie Mac Takeover Gives McCain A Political Opening The Dangers Still Lurking at Freddie and Fannie |