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Benefits of interest accounts

Benefits of interest accounts

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Saving Interest account is one of the ways where many retail investors can open accounts at a commercial bank and it does have many benefits.

· It provides interest income on the amount deposited with the bank. When you deposit any money in your saving account with the bank the bank pays interest on that amount to you however the interest is less compared to what you can earn in market.

· The risk of default of major commercial banks are low and in many countries the saving accounts are guaranteed by the government backed agency to a certain amount so if your bank defaults then the government will reimburse you to a certain extent.

· The amount that you deposit in your saving account can be easily withdrawal and there is not major issue in withdrawing or depositing because of the ATM facility provided by the banks and the there is very limited restriction on the amount you can withdraw and deposit.

jeff jeffy answered 2 years ago
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