Bank, being the Trustee of your money, allows you deposit money in the bank in a current or savings account. Most people run both. It’s a good idea to inquire bank rules regarding your money deposit when you are opening your account there. Fortunately, you are bound to find a lot of information on a lot of banks freely and easily except those that are about a person’s account details. Some considerations are always there before you make your choice for a good bank. The initial deposit or ‘safety money’ as well as the interest rates offered by US rates may drive your choice. Fee structure like annual fee, overdraft fee and lower limit on check encashment etc. are other factors.
The Regulation D of the United States official bank policy says that the term “savings deposit” includes an account that meets the proposed criteria of one, from which under the terms of the deposit contract, the depositor is authorized to make up to six transfers on pre-authorized accounts like ACH, phone/internet transfers, automatic overdraft etc. Withdrawals and transfers made in person or through ATM are not subject to limit. A recently upgraded clause for your US savings account allows you to make these transfers by check, draft, debit card or order drawn to be paid to third parties as is usual in business transactions.
When you open your US savings account, you have to write your seed money in booklet called ‘register’. This book will hold information of all your future deposits and withdrawal on separate pages as they come. You will later get an account statement based on this booklet data. This will show your transactions, charges and interest earned on your money. You must do the bank reconciliation, which means checking your register entries against bank statement’ to avoid human error on your part or inadvertent computer error.
The main difference between a savings and current account is that withdrawals costs higher and takes more time with the former. The US is sure to impose penalty if Regulation D (as stated above) is violated, through a service charge or even conversion of your savings account to a current account.
Accessing your savings account through websites is gaining popularity because of ease of balance checking and withdrawals. You might be paid higher interest rates as the banks save time and energy on physical transaction for each payment . The only downside is that you miss out on payments during the time when funds are in the process of being transferred to a local bank from an online one.