Money kept in a savings account is less accessible than cash kept in a checking account, which you generally can withdraw without restrictions. As fundamentally that’s what a savings account is. It allows you to store cash securely and earn interest on your money.
Banks and credit unions offer three kinds of savings account. There’s a Call account, where you can access your money readily, by giving the bank notice usually the bank will require 24 hours’ notice.
Notice deposits are investments made for indefinite periods; but you cannot get access to your funds until a specified ‘notice period’ has been served. The longer the notice period, usually, the higher the interest rate offered. Interest rates tend to be a bit more favourable than for call accounts.
Fixed deposits tie up the investor’s money for a term specified in advance: this term may be anything from one month to five years. And you can earn quite reasonable rates of interest on fixed deposits
Therefore if you’re over the ages of 18 are a South African citizen and want to save up money, which you don’t want to utilise immediately then open a savings account. And these days with the access to internet you can open your savings account online. Although if you’re opening your first bank savings account it may be beneficial for you to open it through the bank branch of your choice.
As you can ask questions and learn the benefits and disadvantages of the types of savings accounts through the bank consultant. So to figure which savings account to open and the interest you’ll be earning. Knowledge is power after all, and when it comes to your money the more you know, the more in control you‘ll be.
And that’s why the bank branches are there for that necessary face to face interaction in regards to your money, therefore utilise their banking experience. Although requirements can differ depending on the bank or credit union chosen.
But usually, documents to take along with you when opening your first bank savings account include.
- A green bar-coded South African ID or Smart ID Card
- Valid Passport
- Proof of residence
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