A savings account is one of the simplest types of bank accounts available to consumers, letting you to store cash securely and earn interest on the money. According to https://www.nerdwallet.com, banks and credit unions offer three kinds of savings vehicles, each with varying requirements and levels of return. Knowing the differences — what’s good about them, what could be a problem — is the first step towards finding the right savings account. The basics Cash kept in a savings account is less accessible than cash kept in a current account, which you generally can withdraw without restrictions. Making too many transfers — by cheque, debit card or computer, for example — typically leads to a fee. Taking money out through a teller or the ATM does not count towards this six-per-month limit. While you are keeping your money from burning a hole in your wallet, it is earning interest in the savings account. In a sense, you’re lending the bank this money, so it can turn around and offer loans to other customers, and the bank is paying you a little amount to thank you . Savers usually can find the best rates of return in online savings accounts. If you prefer a local option, credit unions tend to offer higher rates than big banks. Once you have decided, you can open a savings account online or at a branch. Your earnings from interest alone won’t be enough to save for the unexpected; add to your savings with every pay package so you’re well-prepared. Ideally, your savings account should cover three to six months of expenses. If that seems like a lot, start small. In any emergency, you’ will be glad to have a cushion, no matter what the amount. Learning about fixed deposit A fixed deposit account offers some benefits to the bank depositors. An online report byhttps://en.wikipedia.org explains what to know about a fixed deposit. A fixed deposit is a financial instrument provided by banks and this provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. It is considered to be a safe investment. One of rhe defining criteria for a fixed deposit is that the money cannot be withdrawn from the account as compared to a recurring deposit or a demand deposit before maturity. Some banks may offer additional services to the account holders such as loans against the FD certificates at competitive interest rates. It is important to note that banks may offer lesser interest rates under uncertain economic conditions. The interest rate varies between four and 11 per cent. The tenure of the FD may be seven days, 15 days, 45 days or one and a half years. It can be as high as 10 years. To compensate for the low liquidity, the FDs offer higher rates of interest than saving accounts. The longest permissible term for the FDs is 10 years. Generally, the longer the term of deposit, the higher the rate of interest.