Thursday, April 9, 2009

Learn about Banking

Optimizing your Bank to save more

Savings is where our freedom will comes first but we all know that we have to secure our savings.
One obvious answer on where to put our savings in through bank.

Let's start to know the basic types of Bank accounts.

Saving Accounts-the most basic of banking accounts that secures your money from theft and also makes your fund less accessible compared to your wallet which help you prevent over spending.
Checking account-An account more superior than savings account can make you pay bigger amount of spending which enables you not to draw money.
Time Deposit-this a good place to put your excess cash because of its higher interest compare to the two types mentioned earlier. But the money you will invest will be frozen for such time the agreement is matured.

How interest was computed?

Interest = Principal x Interest Rate x Time

Interest rate is quoted in annual or yearly basis in percent.
To compute the interest in less than a year, you have to devide the interest to 360 and multiply on the number of days covered.
All interest are levied 20% on withholding tax so the computation will be

Always remember that Banking is not free and you should be mindful of that........

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