Question

Write about the Savings and their types in detail.​

Answer 1

Answer:

Saving:-

Savings refers to the amount left over after an individual's consumer spending is subtracted from the amount of disposable income earned in a given period of time. Savings can be used to increase income through investing.

Explanation:

Types;

. Deposit savings accounts:-

These are basic savings vehicles offered by banks and credit unions. A standard savings account typically has five key features:

• Stable value

Money in these accounts cannot lose value, so you can count on it being there when you need it.

2). Money market accounts

Money market accounts share the above characteristics with savings accounts. They may offer additional features such as check-writing, but are still limited to six transactions per month.

3). Jumbo savings accounts:-

Jumbo accounts are ones that pay higher interest in exchange for larger account balances.

Traditionally, $100,000 has been the threshold for something to be considered a jumbo account. However, banks sometimes offer preferred interest rates at different account balance thresholds. The same may apply to jumbo money market accounts and jumbo certificates of deposits (CDs).

4)4. High-interest savings accounts:-

A high-interest savings account is no different from an ordinary savings account, except that it pays a significantly higher rate of interest.

The savings accounts offered by most banks usually offer fairly similar interest rates. However, there are generally a few institutions offering much higher rates than the industry average.

5). Rewards savings accounts:-

These are the same as ordinary savings accounts, except the bank will give you an extra reward for doing business with them.

The reward may take the form of cash or a gift. What you have to do to earn the reward depends on the bank. It may simply involve opening a new account with them, though often you are required to deposit a certain amount of money or set up direct deposits into the account.