Are you one of those who allocate a part of your salary to a savings account? Or the ones you save on your own? Whatever you are, you should know that banks offer this type of product.
If you would like to know what a savings account is, how it differs from others, its characteristics, how to open one and more things about it, today we have prepared this compilation for you.
What is a savings account
A savings account is actually a financial product that it will allow you to reserve a part of the money (without that implying not having access) to avoid spending it. In this way, a person is helped to control spending in some way since, of their income, a part is allocated to gradually having a "mattress" that they can access if they need it.
Now, you have to make that "investment", that is, that reserve of money, periodically, and in return you get an interest for it.
Savings account or remunerated account
One of the common problems is that many confuse a savings account with a paid account, when in reality they are not the same concept.
The paid account is a savings account, but different. First, it is supposed to be embedded within the bank account, and the interest rates are higher. And second, because we are talking about a more binding account (because they will offer you profitability, yes, but in return you will have to hire other services or meet the additional requirements that they ask of you).
In fact, distinguishing between a paid account and a savings account is easy if you look at the TIN and the APR; If these are high, then we are talking about a paid account, if they are low, it is a savings account.
Savings account and bank account
Another mistake is confuse a savings account with a bank account (or that the bank "sells" it to us as an equal). The truth is that they are two different things and the key is in the objective that each one has.
While the purpose of the bank account is to carry out financial operations (pay, collect, send transactions ..., in other words, move money), in the case of the savings account its ultimate goal is that the money rests, That it does not move for a while and that, in the long run, it gives you profitability, that is, that you get a little more money for having it still. That does not mean that you cannot access it (as long as it meets a series of requirements to do so and according to the type of contract you have signed).
Characteristics of a savings account
Focusing on the savings account, you should take into account the characteristics that this product has, as they will help you understand it better. To get started:
- It has an interest rate. This will be less than the fixed term. Banks usually offer between 0% and 1% APR (sometimes they offer more, but be careful with the fine print). The normal according to the ECB is 0,03% APR (so those that offer you less are not worth it).
- Some savings accounts have special conditions. As for example that there is the entry of a payroll (or that other conditions are met to give access to that type of account). But you should know that, in that case, they are not really a savings account.
What are savings accounts for?
You may wonder why hire a savings account (especially if you already have a bank account or are one of those who, indirectly, save a part of money per month). But the truth is that there are three purposes or uses for which they are used:
- Because you make money with it. It is not that you are going to get much, but when the money is "stopped" it does not generate anything. On the other hand, in a savings account it would, even if it was only a few cents.
- Because having the money in an account does not mean that you cannot withdraw it if you need it. Unless you have signed more restrictive conditions, in principle you could remove it at any time.
- To avoid spending it all. As the name suggests, it is a savings, which means that it should not be used. Many families hire this type of banking service for their children, so that they learn to save and know how this action can help them to have money in case of unforeseen events, or when they want something and need to raise the money to get it.
How to open a savings account
If after everything we have told you, you have encouraged to open a savings account, you should know that this is very easy. Of course, it is convenient that, before doing anything, you consult several banks since the conditions may vary depending on each one and it could be more profitable to have it in a different bank than yours (or even change everything to that new bank).
En general, to open a savings account you only need:
- To appear in an office. Almost all banks have offices in the cities so there will be no problem. And even in some towns you can also find branches, both to inform you and to carry out the procedures.
- Do it online. It is another option, and nowadays much more used, since it also allows you to compare savings accounts between different banks to see which of them is best for you.
- Do it over the phone. It is not usual, but it can be done.
The only problem that these last two forms can have is that it is possible that, to identify yourself, they require you to go through an office (due to the issue of "legalizing" the money).
How to choose the best bank for a savings account in Spain
The big question: which bank do I go to to open such an account? The answer is not simple, since each bank offers different conditions and it is necessary to compare them all to choose the most appropriate one. In addition, the fact that one is perfect for one person does not mean that it is perfect for another, since it will be determined based on other conditions.
However, we can give you some guidelines that will help you know how to choose the best one:
- That they offer you a good return. Obviously, the one with the highest profitability (as long as the rest of the conditions are not abusive), will be the best choice.
- That has no commissions. Be careful with this since, sometimes, even if you have a good profitability, in the end the commissions make you lose what you earn for having the money stopped (or even a pinch of what is yours).
- Have flexibility. And, sometimes, there are accounts that block your money without you being able to have it, even when you need it.
With this in mind, there are more conditions that banks can require, and that you will have to assess before making any decisions.