No matter how hard you try, you might feel all your savings are spent on day-to-day activities. You would also wonder if you had more than your savings and use them when emergency situations arise. The best way to strengthen your savings is to put a lock on a savings account for a certain period. It will ensure your shopaholic self is taking a break; if an emergency arises, you can also unlock it. Let us learn more about how to put a lock on a savings account. Also, check out Beem which offers updated interest rates and the best high-yield savings account options that align with your savings goals.
Steps to Put a Lock on a Savings Account
When you open it, a lump sum of money is deposited into your account. The account provider agrees to your terms when you apply. You decide your lock type, duration, and other essential decisions while you use an account. Here are a few simple steps involved in setting up a locked savings account:
Contact your bank and request a lock on your savings account
An account that is locked might be a good option for you. It is a good option if you need help saving money due to temptations or want to earn a high return on a lump sum with little risk.
The money will then be locked away for the chosen term of your account while it accrues interest, and you will not have access to your money during this time.
Specify the type of lock you want
- Withdrawal Lock
- Transfer Lock
- Debit Card Lock
- Online Banking Lock
Also you like: Get more detail information about Types of Locks
No access or locked accounts offer the best interest rates for low deposits for the timeframe that works for you. A lock’s type determines how much you can save and how much access you will have to your savings.
The Certificate of Deposit (CD) is an account in which your savings are locked for a certain period, and you are charged a penalty if you withdraw money before the time has passed. Savings accounts offer a variety of options for people looking to save better.
Specify the duration of the lock
Another essential factor to finalize is the duration of the lock. If you are new to savings, you must only lock for a smaller period. Beginners might be urged to spend more; they might pay a penalty to withdraw money from their accounts. A smaller goal is more straightforward for them to handle. The duration can be six months, a year, or up to your requirements.
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Different durations offer different interest rates; you can select the highest interest rate duration for higher returns. Savings accounts without access typically earn higher interest rates the longer you keep them. The situation is sometimes different, and comparing no-access accounts is crucial. Your financial goals and whether you need access to your money during the term will determine how long you choose to lock your money away.
Confirm the request with your bank representative
Once you finalize the type of lock and its duration, confirm the request and sit back to relax. While you rest, your money will multiply and help you save a bunch quickly.
Conclusion
Remember, locked savings accounts cannot be withdrawn. If your account is not hidden from internet banking, you can still deposit money and watch your balance grow. It is an excellent plan for those who are impatient spenders and sopoholics. If you, too, suffer from an urge to spend, put a lock on your savings account to start your journey towards financial stability today. Compare and find the best high-yield savings accounts at Beem and watch your money grow.
FAQs
Can I lock in a savings account interest rate?
Yes, you can lock your savings account interest rates if you opt for a certificate of deposit( CD). Usually, savings account interest rates change with market conditions.
How does a locked savings account help me save money?
Locked savings accounts stop one from spending money for small daily activities. With restrictions on small payments, the habit of overspending is reduced, and one can use savings account funds for future goals and emergencies.
What type of account is best for savings?
There are many savings account options, each with pros and cons. The best returns are possible with high-yield savings accounts. One can also select a CD savings account or lock one’s savings account to reduce spending habits.
