Types of savings and investment accounts
Whether you have short- or long-term financial goals in mind, you are bound to find a savings and investment account that is tailored to cater for your specific needs.
Savings accounts: For short-term goals
Savings accounts at most banks offer an interest rate that rises as your balance increases. They also come with a debit card, so that you can make purchases without needing to withdraw cash. These accounts seldom have a minimum monthly income requirement and have no penalty fees when you have to use funds from the account.
Notice accounts: For medium-term goals
This type of account allows you to save money in an account, but it does not allow withdrawals without notice in advance (usually more than a calendar month). This is a brilliant way to avoid making rush decisions or “passion” purchases. The interest rate is also often higher on notice accounts.
Investment accounts: For long-term goals
Investment accounts do not allow you to touch the amount you’ve invested for a pre-set period. This timeframe can range anywhere from 3 to 5 years. Investment accounts also offer higher interest rates than other accounts.
Choose the account that works best for you and your life to change the shape of your future. It’s never too early or too late to start saving!