Types of Savings Accounts

Opening up a savings account may be a very thought-consuming process. In this day and age, there are a number of options available to individuals desiring to open a bank account for the specific purpose of retaining money and earning interest. Deciding on what the deposited money will be used for determines which specific type of account is right for you.

What are your options?

In the most general terms, there are two options available to those who with to open up a savings account: a general, or passbook, savings account and a money market account.

General savings accounts typically do not have a minimum balance requirement, or if they do, it is quite low. These accounts are targeted at individuals who are not looking to earn a whole lot off of interest and who anticipate drawing money from the account frequently. Interest rates are generally very low – less than 1% on average.

Money market accounts are generally used more often by people who are aiming to earn more off of interest and who do not plan on accessing them too often. There is a higher minimum balance associated with this type of account and a limit on the number of withdrawals allotted each month. However, interest rates are generally considerably higher than in general savings accounts.

Contact Us

If you would like to learn more about what type of savings account you should open, call the Austin bankruptcy lawyers of Slater, Kennon & Pugh Ltd.LLP today at 512-338-1100 to speak with one of our qualified attorneys.