Different Types of Savings Account

Different Types of Savings Account

Passbook account

  • Depositor obtains a booklet in which deposits, withdrawals, and interest are documented.
  • Average interest rate is lesser at banks and savings and loans than at credit unions.
  • Funds are easily accessible.

 Statement account

  • Basically ¬†resembling a passbook account, except depositors receive monthly statements instead of a passbook.
  • Accounts are usually accessible through 24-hour automated teller machines (ATMs).
  • Interest rates are identical to passbook account.
  • Money in the account is effortlessly available.

Interest-earning checking account

  • This type of account merges benefits of checking and savings.
  • Depositor makes interest on any vacant money in his/her account.