Savings accounts

Apart from a current account, you can also open a savings account with a bank. A savings account, however, is not offered automatically when you open a current account. This is a voluntary service, which may or may not be offered as part of a current account package. Hence, if you wish to open a current account, ask the bank in advance whether or not a savings account can be opened, too.

A savings account can be opened as a subaccount to your current account. Thus, the part of your funds you intend to save will be kept in that account. The bank will, at your request, transfer the amount earmarked for saving from the current account to the savings account. This account, however, cannot be used to make traditional payment transactions (e.g. card payments). You may handle your funds held in a savings account but this handling will be limited to transfer to your current account.

Funds held in a savings account earn interest. As a general rule, savings accounts pay interest at a higher rate than current accounts. Hence, you should transfer any surplus funds from your current account to a savings account. A big advantage of a savings account is that it is not tied to a minimum deposit, nor is tied to a time period during which the funds deposited are blocked. In some banks, the handling of a savings account is limited (e.g. the date when you may deposit or withdraw funds, the amount of funds deposited or withdrawn).

A savings account is a suitable product for you if you wish to save for unexpected expenses (for creating reserves). Funds held in a savings account are easily accessible and are not tied to a minimum deposit as a rule.