Savings – Savings forms

Don’t be too quick to opt for an attractive high savings interest rate. Also pay attention to the conditions and flexibility of the bank and savings account. There are many forms of savings possible. How do you make a good choice about which form best suits your situation? In any case, it is wise to know what options you have before you do business with a bank. Banks often apply different conditions. And current interest rates can be found on various websites. Compare before you choose!

What types of savings are there?

There is a wealth of savings options at banks. To gain more insight, the eight most common forms are listed below. For each savings form, a brief explanation is given of what that specific savings form entails. Every financial situation is different, so you have to look for the most suitable savings option with the highest interest rate. There are various websites where you can view the most current interest rates.

  • Savings account
  • Bank savings
  • Youth savings
  • Bonus savings
  • Internet savings
  • Save deposit
  • Sustainable saving
  • Save climbing interest

Savings account

There are savings accounts with and without restrictive conditions. You can always deposit money and withdraw money into a savings account without restrictive conditions. This form of savings is often free and easy to take out. A disadvantage of this form is that the interest payment is often lower than with other forms of savings.

Bank savings

With bank savings you save with a tax advantage and you have a tax advantage. In fact, this form of savings can be compared to a savings or annuity insurance policy. The difference is that you take out the latter with an insurer and not with a bank. When taking out bank savings, pay close attention to the savings interest rate and the conditions at different banks. The tax authorities also apply certain rules regarding bank savings in order to obtain a tax advantage. Depending on your savings goal, the proceeds from a bank savings account are taxable or tax-free. A disadvantage of this form is that you cannot easily withdraw money in the meantime.

Youth savings

This form of savings means that you save for children. A child can save for themselves, but (grand)parents can also save for a child. Youth savings are usually aimed at the future, for example for a driver’s license, study costs, a moped, etc. Some savings accounts are more flexible than others. With most accounts you have to deposit a fixed amount per month or quarter. The withdrawal period for the savings can also vary. Some accounts have a fixed amount until the child turns 18, while others do not.

Bonus savings

A bonus savings account provides a standard interest rate plus a bonus when the saved amount has been fixed for a certain period of time. With this form of savings, the longer your money is tied up, the higher the bonus interest you receive. The disadvantage is that you will not have access to your money for a certain period of time.

Internet savings

An internet savings account can be closed quickly. It is easy to use, you just need a computer with an internet connection. You can transfer money via the computer. The interest you receive on an internet savings account is often slightly higher than on a regular savings account. The costs for banks are lower. A disadvantage of this form is that you are highly dependent on an internet connection. Temporarily no internet and you cannot access your money.

Deposit savings

This form means that the money is tied up for a longer period of time. You can often choose from a standard term with a fixed high interest rate. This form of savings yields a high interest rate. The money is often fixed for several years (3, 5 or 10 years). Withdrawing money in the meantime costs money. You then pay a fine.

Sustainable saving

If you want to save sustainably, the bank invests your money in sustainable projects. The interest rate on a sustainable savings account is often quite good. In addition, your money is used for sustainable projects from which the bank generates a return. If you want to do something for a good environment, sustainable saving is the best option.

Climbing interest savings account

This form of savings has a longer term than most other forms. With a climbing interest savings account, the savings interest grows with the term. There is interest on interest during the term. A major disadvantage is that you will not have access to the money for a longer period of time. Therefore, compare the different climbing bills well in advance.

Compare savings accounts

You can easily compare different savings types and conditions on a number of websites. You can also often find the most current interest rates there. Never go too quickly with a bank if you want to open a new savings account. First carefully compare all the terms and conditions of several accounts you can choose from. Pay particular attention to the term and the inability to access the money. The purpose for which you want to save is very important when determining which form of savings is best suited. If you only want to have access to the money in a few years, you can opt for a savings form with a longer term so that you can receive a higher interest rate.