What is the savings bank?
Savings Bank is a financial institution that accepts savings from members of the general public who want a safe place for their further revenues to be available if necessary. The bank invests money, pays interest on deposits and uses the rest to generate profits for the owner. The actual savings bank only accepts deposits, while savings and loans are also expanding loans and using loans as an investment. In some cases, the bank has private ownership, while in others it can be publicly traded and offered to the public. In the mutual savings bank owns a bank with shares on the basis of the amount of money they have on the deposit. Shareholders receive periodic dividends from the bank and they may vary depending on the amount of money it earns.
The depositors have the possibility to place a time deposit or deposit of demand in the savings bank. In and time deposit, the customer lends the money to the bank for a specified period of time, agrees that it does not use it and receives a higher interest rate in exchange. For exampleThe bank has a five -year deposit exclusively using money for five years. In an emergency, the customer has access to him, after paying a penalty fee. Demand deposits allow customers to withdraw money at any time.
In the traditional savings bank, which only takes deposits and invests, no other financial products are available. Savings and loans provide loans, usually housing loans, although sometimes a passenger and vehicle are also available. It can also be able to refinance existing loans. Some banks are expanding their financial services to offer financial advice, debit cards and similar services and boundaries between the savings bank and other types of deposit institutions can be blurred.
Savings Banks Strroved a very safe and reliable form of investment. The deposits are insured and depositors will not lose the money they leave with the bank. Interest earnings are also lower than other types of investment, which reflects a lower risk. When deciding where to invest in building capital shares for the future, it may be good to place some money in savings where it will be safe, and consider some detention back for more risky investments that can bring a higher return.