Understanding the Different Types of Savings Accounts in Lutz FL

It’s hard to imagine how you would be able to survive even a single week without access to your bank cards and bank account. It’s an important lifeline in the modern world. There are many different types of savings accounts you can open as an individual interested in achieving your various financial goals. Keep reading to find out more about this topic before you open a new savings account. 

Regular Savings Account

The most common kind of account you would open is a regular savings account. It allows you to make cash withdrawals, but only for a limited number of times per statement cycle. This is to ensure that you are saving money rather than spending it.

That’s the biggest difference between a checking and a savings account. A checking account usually comes with unlimited withdrawals and transactions but also has a monthly charge. Savings accounts are usually free, as long as you don’t go over the number of transactions allowed. 

Most people will have both a checking and a savings account, so you could do that as well, using each for a specific purpose. 

High-Yield Savings Account

Some savings accounts will give you a higher savings interest rate than a regular savings account. 

If you wish to keep a certain amount of your money in cash for an expenditure that’s coming up, but you don’t want to put it into a CD (certificate of deposit) or stocks because you need it to be liquid, then a high-yield savings account is a good choice.

This way you are still getting some interest on the money stored, but you can take it out anytime you want, without any hassles or delays. 

Student Savings Account

If you have a student in the family or you are a student yourself, banks will allow you to start a bank account for free, so they can get your business from the get-go.

They might even give you free Airpods or some other incentive for starting your banking journey with them rather than their competition. 

Health Savings Account

Do you have any medical expenses coming up? Then a Health Savings Account (HSA) is the kind of account you will want to open. 

The benefit of such an account is that they aren’t subject to income taxes and you can roll over unused funds to future years over again. But these funds can only get used for medical expenses and nothing else, so if you need to save up for another expenditure, better to choose one of the other savings accounts mentioned above. 

Many Types of Savings Accounts to Choose From

Banks are always trying to give their customers lots of choices when it comes to storing their money with them. This is why there are lots of types of savings accounts for you to pick from.

Interested in opening up a savings account with a credit union in Lutz, FL? Contact us today sat FiCare Federal Credit Union so we can help you with the process and answer any questions you might have.