What disqualifies a savings account

Posted: August 15th, 2013 | Author: | Money

Savings account is a financial product and it is directed by some rules at everything else is. This means that a bank account A will vary from bank B, C, and in turn, the bank may try to sneak in a few paragraphs of the agreement, which, instead of bring us a profit can result in losses. The first of these traps is the low interest rate.

B Rosen / photo on flickr

B Rosen / photo on flickr

The representative may try to push the product from us pitifully low rates hoping that it will check competitors’ bids and give up on the catch. Interestingly, it is still a lot of people gives up to this trap. Therefore, always compare financial products to competing offers. Cross-selling is another threat. What does that mean? It is a term used to describe sales of several products in the package. For example, the savings account are required to maintain current account or have a credit card.

It is worth to think about it, because You can maintain a personal account which can cost as much as the profit earned from the savings account and it will be absorbed to maintain current accounts. It also happens that the bank is difficult to withdraw funds from a savings account. Transfers to foreign banks can be expensive or impossible to be performed, and the amount shall be taken at the branch, and as you know, not everyone wants to go to the bank, stand in a long line, etc. Great attention should be paid to another element. Have a closer look to all types of promotions. You may find that the bank gives us a very high interest rate, but in practice, after a few months it will be reduced to a much lower level. It would be good to know about the registration process in order to avoid unpleasant surprises later.

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