Saving services at the bank not only help depositors protect their assets from inflation but can also bring attractive profits through high-interest investment forms. However, to make the most of these services, users need to clearly understand the types of savings, how they work, and the advantages and disadvantages of each service. The following article will help you learn in detail about savings services at the bank.
TERM SAVINGS
One of the most popular and safest savings services at the bank is term savings. This is a type of deposit for a certain period of time, usually ranging from 1 month to several years. When depositing money in this form, customers will receive a fixed interest rate, paid at the end of the term or periodically monthly, quarterly, or annually depending on the agreement with the bank.
Term savings can be divided into types depending on the deposit period, including: short-term savings (1 to 6 months), medium-term savings (6 months to 12 months), and long-term savings (over 12 months). The interest rate of term savings is usually higher than that of non-term savings and fluctuates depending on the bank, type of savings, and deposit period.
The advantage of term savings is safety and ease of calculation. Depositors know in advance the amount of interest they will receive when the deposit expires, helping them proactively plan their finances. However, the disadvantage of this type is that depositors cannot withdraw money before the due date without incurring a penalty fee, so it is necessary to consider carefully before deciding to deposit money in this form.
NON-TERM SAVINGS
Non-term savings is a flexible service that allows customers to deposit money in the bank without requiring a fixed time. This type of savings is suitable for those who have flexible cash needs but still want to earn profit from excess money.
With non-term savings services, depositors can withdraw money at any time without penalty. However, the interest rate of non-term savings is often much lower than that of term savings, because the bank has no commitment to the time the customer uses the money. However, this is an ideal choice for those who need flexibility in using money but still want a stable source of income from bank interest.
ONLINE SAVINGS
With the development of technology, online savings has become a popular choice for many people. This is a service that allows customers to deposit savings through the bank’s online platforms, including websites or e-banking applications. Online savings bring many benefits to customers, including convenience, speed and time savings.
What is special is that the interest rate of online savings is often higher than that of traditional savings, because the bank saves operating costs by not having to maintain branches or conduct direct transactions. Depositors can choose to deposit money for a term or non-term, and all transactions are done online without having to go to the bank.
In addition, online savings also has a number of other advantages such as the ability to track balances and interest rates via phone or computer, automatic notifications of terms and interest amounts when due, and special offers from the bank for customers using online savings services.
PREFERENTIAL SAVINGS
Some banks offer preferential savings services, specifically for customers with large deposits or loyal customers. These services often come with special conditions such as higher interest rates, gifts, or other incentives such as free account management services or withdrawal fees.
For preferential savings, customers can enjoy attractive interest rates or loyalty programs, which increase the benefits of depositing money at the bank. However, to receive these incentives, customers need to meet certain conditions, such as a minimum deposit amount or a long-term deposit period.
CUMULATIVE SAVINGS
Cumulative savings services are a form of long-term savings, in which depositors can make multiple deposits into a savings account for fixed terms. Each deposit will be added to the account balance and can be calculated interest at the agreed interest rate. The cumulative savings service helps customers easily accumulate a large amount of money over a long period of time without having to worry about withdrawing money in the middle.
The advantage of cumulative savings is flexibility and the ability to grow steadily. Customers can choose the amount of regular monthly deposits and the deposit period that suits their financial capacity. However, when using this service, customers need to commit to depositing money regularly and comply with the regulations on deposit time to optimize the benefits from savings.
SAVINGS AND INVESTMENT
In addition to conventional savings forms, many banks now also provide savings products combined with investment. These are financial products that allow customers to both save and participate in investment forms such as stocks, bonds or investment funds. These savings and investment products often have higher interest rates than regular savings services, but come with a certain level of risk.
It is important when participating in savings and investment products that customers need to clearly understand the risk factors and how the investment tools provided by the bank work. In addition, it is necessary to periodically monitor and evaluate investment results to ensure maximum financial benefits.
CONCLUSION
Savings services at banks not only help customers protect their assets but also create opportunities to increase their assets through stable interest rates. Depending on their needs and financial goals, users can choose suitable savings forms such as term savings, online savings, or savings products combined with investment. Choosing the right type of savings service will help customers optimize benefits and achieve long-term financial goals safely and effectively.
