Introduction to Personal and Business Savings Accounts

Savings accounts can be of two major types. Accounts meant for individual use are called personal savings accounts and those for the use of businesses are called business accounts.

Many people would like to invest in banks instead of having money locked up at home. Money which would had remained idle is sure to fetch some interests and benefits by investing or depositing in banks. Personal can meet their requirements.

Savings can be of great use in long term. It is generally a good practice to maintain a savings and deposit periodically to the account. Over time as the balance grows one can get good interest rates. Also as a long term account holder there would be many benefits offered by the banks. For example, banks generally immediately approve loan applications by long term account holders.

Business accounts on the other hand can help businesses to a great extent. They can provide good interest rates. They can even act as secondary source of steady income amidst market fluctuations. They can be used to recurring expenses like monthly bills, salary etc. In long term, when interests sum up, business are sure to get good returns.

Businesses would also want loans at many points in time. They would also require huge amount of money, which would be considerably higher than that of individual loans. Having a business savings account adds to the credit history and can help a lot in getting loan approved. These amounts can be used to improve infrastructure, start new ventures etc.