When a person begins to produce and manage money, they will necessarily have to go to a financial institution to open a Bank account that allows you to efficiently manage your earnings. Thus, among the most common options we find the savings account, current account, salary account and fixed term account. What is the difference between them? Next, we explain it to you.
Keep in mind that companies in the financial system are free to set their interest rates, so we recommend that you check what is the effective annual rate of return (TREA) applicable to the bank account you want to choose.
Savings account
It is an account in which you can store your money safely and at the same time generate profitability, since, according to the economist Javier Zúñiga, when placing your money in this type of account, the banking institution has to pay you a certain interest rate (in soles or dollars) depending on the time you are going to leave it.
In addition, it allows you to carry out essential operations, such as bank transfers, online purchases, withdrawal or deposit of money, among others. In that sense, the main advantages offered by a savings account are:
- Keeps your money protected.
- You obtain profitability with zero risk for your savings.
- You have the possibility of accessing insurance, credit or other financial products.
- You count on your money to make smart investments that increase your assets.
In this type of account you can deposit your savings and generate interest. Photo: Andean
Current account
A checking account is a type of bank account that allows you to make payments and receive your collections efficiently and safely, making it ideal for entrepreneurs, young independents or businesses. This is how the economist Javier Zuñiga explains it.
“It is the account that a company or business has with a certain amount of soles or dollars, and with it it turns or transfers money to its suppliers or workers,” says the specialist.
Unlike a savings account, the checking account does not generate monthly interest on the existing balance, but it allows you to manage a checkbook to carry out banking operations or make money orders. You can also access a punctual overdraft; that is, if you make a transaction that exceeds your balance, the bank will lend you what is missing (according to the policies of the financial institution).
The main advantages offered by this type of account are:
- Have security, order and control in the management of deposited funds.
- Have the possibility of handling various instruments to dispose of your money: checks or business debit cards.
- Convenience to carry out online operations, mainly when making electronic transfers to your own accounts and those of third parties, whether from your bank or a different one, with immediate payment 24 hours a day, 365 days a year.
- Usually, the checking account has certain products associated with it, such as multi-risk insurance for your business, pension plans and investment funds.
A checking account allows you to write checks. Photo: concept
salary account
The salary accounts They are a type of free bank account in which, primarily, a worker’s salary is deposited, where the issuer is the employer. In this way you will have the money of your remuneration safe and you will be able to dispose of that amount whenever you like.
According to Zúñiga, unlike a savings account, this account is opened by your employer, does not charge maintenance and allows access to different promotions, which will depend on the bank where you are affiliated. In addition, you can access an advance on your salary, obtain a vehicle or mortgage loan at a lower interest rate and receive personal loans for an amount equivalent to twelve times your salary.
fixed term account
The fixed term account It is an investment instrument that allows you to save money by earning interest, since according to the economist Zuñiga, in this type of account you deliver a deposit of money to a financial institution for a certain period and over that time you receive an interest rate in soles or dollars. .
After the term ends, the bank returns the money plus the interest earned. “But you have to keep it for the agreed time. If you withdraw it earlier, you earn less interest”, clarifies the specialist.
In the fixed-term account the contributor deposits his money for a certain time so that it generates interest. Photo: Andean
What should you take into consideration when choosing a bank account?
Before opening a bank account you should study your needs and analyze what type of account suits you best. In addition, the economist Javier Zuñiga recommends thoroughly examining the financial institution where you are going to place your resources. “You have to make sure that the bank is regulated by the Superintendence of Banking and Insurance and place it in the one that offers you a better interest rate”, says the specialist
It is also important to check what kind of charges exist for the use of each service: account opening and maintenance, for withdrawals at ATMs in your own branch network, as well as at other banks. Check for specific pickup times and locations, transfer fees, check writing fees, fees for bad or insufficient funds checks, etc. Also investigate if there is an annuity, monthly or similar charge, and find out the minimum balance you must have in the account so that you are not charged commissions.
Source: Larepublica
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