Credit Card Base

Traditionally when you want to save some money, you go to your bank and you open what is referred to as a pass book savings account. The minimum amount you are required to deposit in order to establish one of these accounts varies from bank to bank, but generally you need around one hundred dollars to open your account.

Once you have filled out your paperwork, and deposited your money into your new account, the customer service personnel at the bank will issue a small book that you are supposed to record your deposits and withdrawals in. This pass book will be much smaller than a checkbook is, as a matter of fact it will be about half the size of a checkbook register. Your account number will be in the pass book so you can fill out your deposit or withdrawal slips for your account.

You will probably be told that you are allowed either three or four withdrawals from the bank every quarter that will be free of charge, if you make more than that number of withdrawals within the time period, you will be charged a set amount for each additional money transfer. A quarter is a three month period of time usually Jan-Mar, April-June, July -September, October – December. Your quarter does not start when you open your account, but follows the normal pattern for the bank.

These traditional savings accounts do not pay a very high interest rate on average, but they do pay higher rates than some of your other options. You will find that these type of accounts are steady in the amount of interest they pay, they vary only slightly from year to year.

You do have to report all the interest you earn from an account like this to the Internal Revenue Service as money earned each year. The bank where you have your money at will send you a yearly statement that tells you how much money you deposited throughout the year, how much you withdrew, and how much interest you earned on the money. You will send a copy of this statement into the Internal Revenue Service when you file your yearly income taxes.

If you’re not happy with the options provided at your bank, you might want to consider opening an online internet savings bank account who more often than not will give you better rates than your bank.

Similar Posts:

• Credit Card Penalties May Jump to 30 Percent for Bank of America Customers
• Credit Card Penalties May Jump to 30 Percent for Bank of America Customers
• What is a Revolving Credit Account?
• ZashPay
• Tips for Business Checking Account Users