Jumoke Alabi has three different accounts with a bank. She has a current, savings and a special account, which is one of the innovations from the bank.

Her bank deducts regular charges on her current account but does not pay any interest on it. She gets some returns on her savings account with little charges.

Alabi earns higher interest on the special account but her bank deducts charges for transactions on the account. On this special account, the bank has, however, placed some conditions on how she can operate it. She must maintain the minimum account balance and cannot issue a cheque to anyone or transfer money using her debit card. She cannot have a debit card to withdraw money from the Automated Teller Machine but she can use her token to make transactions.

Despite having the three accounts, she still does not seem satisfied. She is considering opening a fixed deposit account because she has idle funds that can be kept in the bank for a while and get some interest paid on it.

The interest an account owner makes on an account depends on the type of bank account that the fellow has.

Again, the best rates are often earned on accounts with restrictions or requirements. Current accounts or accounts that allow the owner to issue cheques do not usually earn the owner any interest.

To earn more money, a depositor may have to opt for savings account, fixed account or any other type account for long-term investment bonds.

Banks operate different types of savings accounts, which allow the customer to keep money and earn little interest every month. These accounts usually require a little or a minimum balance to open. A customer could visit his/her bank to make enquiries about the different options available to save money. It should be noted that some banks pay higher interests than others.

The following are three best ways for bank account owners to earn high interests on their personal accounts.

  1. Opening a fixed deposit account

For those who have some idle money that they may not need soon, this might just be an account that they should consider. It is an investment account that allows the owner to save money for a stated period of time and earn a fixed interest at the end of the period.

It is not open to other risky investment options such as shares. It encourages savings culture because it will not allow the owner to withdraw the money at will.

It also earns a higher interest rate than keeping funds in a savings account. A fixed deposit account ensures that a person definitely gets returns at the maturity date or the stipulated date of agreement with the bank.

A depositor can also open different types of fixed accounts with different maturity dates. Comparing the interest rates from different banks will help the depositor to choose the right bank for his fixed deposit.

  1. Savings accounts

Savings accounts allow the owners to withdraw money at any time either using their savings book, debit card or withdrawal book over the counter.

It gives free options to access money than other types of accounts. Different banks have different savings accounts, which attract different interest rates. However, the rates paid on savings accounts are not usually high like fixed deposit account.

  1. Special accounts

Different banks have introduced different banks accounts to woo customers and discourage them from making regular withdrawals from their accounts.

A special account will also encourage bank customers to maintain a stipulated minimum balance in the account.

The features of the account include providing a reasonable high interest rate.

The special account also provides incentives to make the customer to save towards a specific target. Sometimes, the bank gives the depositor a bonus for maintaining a certain balance, usually within a year. It can also give the depositor access to loan facilities.

Other types of accounts, which do not, however, attract interest but can be useful to a person, are the personal current account and foreign account.

Foreign account

This is usually called a domiciliary account. It allows a person to have a foreign account in his/her own country. It can be funded through cheques, cash payment, lodgement of foreign currency cheques, and online transfers.

Customers can also withdraw cash or make foreign transfers. This allows an individual to make foreign transaction or send money to relations and friends abroad.

A lot of people usually feel that they do not need this account until the need arises because there are other ways to send money abroad such as Western Union and MoneyGram. But sometimes, it might be necessary for individuals attending seminars or some other programmes abroad to make payment using their personal accounts.

This account does not usually earn interest; rather it attracts charges on transactions. Many Nigerian banks offer this kind of service and its opening is fairly easy.

Personal current account

A current account is probably the easiest account to operate; it enables the depositor to make regular transactions through various means. It allows the depositor to pay in cheques and dividends.

Third parties can also withdraw from the account with the authorisation of the owner.

The account can be used for standing order to pay regular bills such as utility bills, insurance premium, tax and rent.  Unlike other accounts, the current account does not usually earn interest but may attract charges as often as transactions occur on it.

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