ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Savings accounts earn interest as long as you keep money in the account. But keep in mind that you might need to retain a minimum level in some savings accounts. A savings account has no time restriction or maturity period. As long as you keep money in the account, you will receive interest.

Detailed explanation-2: -But unlike most checking accounts, you can also earn a small amount of interest each month, and if used the right way, a savings account can help you curb impulsive, unnecessary spending and meet your long-term goals. Savings accounts are offered at most banks.

Detailed explanation-3: -You can earn interest by putting money in a savings account, but savings accounts generally earn a lower return than investments.

Detailed explanation-4: -The biggest difference between saving and investing is the level of risk taken. Saving typically results in you earning a lower return but with virtually no risk. In contrast, investing allows you the opportunity to earn a higher return, but you take on the risk of loss in order to do so.

Detailed explanation-5: -Gain peace of mind knowing your money is insured. Earn interest on your savings. Pay your bills on time, automatically. Benefit from the best of both worlds with a checking account and a savings account.