The term savings account refers to a financial product created to meet the investment needs of those who wish to use their money with little risk but at the same time do not want to forgo obtaining some profit. To understand how a savings account works, you can think of it as a type of piggy bank, where you deposit your money and leave it for a more or less extended period. In return, your bank will reward you by paying interest.
It is one of the simplest products to invest in and also one of the safest.
Indeed, you are not exposed to market trends as you would be if you invested in stocks or bonds. A savings account can also be opened and managed online. This type of account is a true savings tool and does not allow any other operations besides depositing or withdrawing sums of money. Regarding your savings, the bank commits to returning the sums deposited in your account upon simple request.
The savings account: an investment for minors.
Opening a savings account for a minor will allow your children to benefit from the saved money, and in this case, the account will be in the minor’s name. The savings account can be free or restricted. In the first case, the deposited amounts are immediately available. In the second case, the money can only be withdrawn at the end of the established period, obtaining higher returns in exchange.
Unclear, to be reformulated: a savings account for a minor can be considered a real bank account, but with the particularity of being able to be opened in the name of a minor, with the parent’s or guardian’s authorization. Additionally, compared to a child’s card or a traditional current account, it is possible to earn interest on the deposited money.
It is a good way to start building savings for your child, which they can fully enjoy from the age of 18. There are also blocked savings accounts until a certain age, such as the PEL (home savings plan) and CEL (home savings account). These are savings products that can allow you to obtain advantageous loans and sometimes a state bonus to finance the purchase of a property or to carry out work.
What are the real advantages?
The savings account allows you to manage and grow your savings quickly and safely, and directly online. The advantages you can gain by using this form of investment are numerous:
• Higher returns - A savings account is a real investment tool, which relies on a traditional current account and allows you to obtain on the deposited sums a high income at zero risk: it represents the ideal solution if you want to secure your savings, clarify further if needed.
• Management freedom - If the deposited sums are not subject to restrictions, they can generally be withdrawn at any time by bank transfer, completely free of charge, to the predefined current account.
• Free expiration - You can decide, at the time of signing a new bond, the exact expiration date that best meets your needs.
• No fees - The savings account is free! All transactions carried out within the account, including outgoing electronic transfers to the predefined account, are free. There are also no fees for opening or closing the account.
• Risk-free - It is a low-risk savings tool. As with other bank contracts
in the event of contractual changes, the bank is required to propose the modification (credit interest rate, commissions, and service fees) at least two months in advance via written communication.
It is therefore possible to open this type of savings account directly online. Once you have chosen the offer that meets your needs, you just need to access the homepage of the chosen bank and follow the guided procedure on the website.
