Savings Accounts

Savings accounts can be used to set aside funds generated through the business to pay for certain services, such as VAT. They are generally used to set aside some portion of your income as a specific saving. As banks use the money deposited by their customers to make loans to other people, savings accounts generally attract a high rate of interest on the current balance in return for allowing the bank to use this money for loans.

Access to the money held in savings accounts is generally restricted, so you will not be able to write a cheque against your savings account or draw on it directly by using a debit or credit card.