Savings Account, ubiquitous and the most famous of all banking accounts is, in all likelihood, the first account that one would be opening when one has an income and decides to avail the benefits of banking.
Savings Accounts give you a safe place to put your money away, give you interest and whets your appetite for a long engagement with banks, that usually lasts a life time. A very high percentage of people retain their first savings accounts, even when they’ve graduated on to needing more complex banking services.
Pros of a Savings Account
Simplifies withdrawals and spendings- A no-frills, standard account that keeps things basic; it is a big help if you want to keep your money deposits and withdrawals simplified. It is the savings account that you turn to when you need to withdraw without repercussions and when you need to tie an account to your debit card. The savings account debit card is your personal debit card whereas a trading account debit card is always the company’s. Even traders keep separate their personal and company expenses.
Savings- An interest is paid out if one maintains a balance, for a period of time. The amount of interest and the period differs from bank to bank but almost all of them offer interest. It is easiest way to save and earn interest at the same time.
Safety- Being a basic account, the charges, fees, levies if any are all much lesser than other accounts. A trading (or current) account for example may have hidden costs that usually a banks levy for the trading specific facilities it offers. Almost all current accounts charge more than savings accounts and have a much wider range of fees, charges, penalties etc, which ones needs to understand. If we don’t read the fine print, we might end up paying for a whole lot of different charges. In a savings account though the chances of the bank charging you anything is always very low.
Cons of a Savings Account
Basic in nature- It is a basic account and will not offer OD facility that can be of great help to many, whose incomes fluctuate.
Interest- The interest earned is only an addendum in a savings account, whereas in a Time deposit, there are real opportunities to earn substantial interest.
Value added services like, investment consultancy, 24/7 support, free cheque book issuance, exclusive discounts and offers, petrol points, cash back etc, that many other accounts are loaded with, are usually not made available to a basic Savings Account. There is nothing much that one can do, over and above the fact that one can use one’s own money through a debit card, through a Savings Account; it is simply not enough for many bank account users.
Savings Accounts in Singapore are easy to open; several banks, domestic and international, offer you the options to quickly open a Savings Account. Requirements though, differ from bank to bank and you need to check the minimum salary amount required to qualify for one. Citi Singapore’s Savings Account is one of the most sought after savings account, that offers great banking support and a wide range of standard banking advantages.