Do You Have A Locked Savings Account?

Discussion in Retirement Plans started by ptahm22 • Dec 16, 2016.

  1. ptahm22

    ptahm22Active Member

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    This is an account where you are allowed to lock your money for a specific amount of time. You earn a higher interest but accessing your money before the time you have set is complicated. You will have to wait for not less than two days if you choose to withdraw your cash before the account matures. I use these accounts sometimes when I want to accomplish a goal. Are there such bank accounts in your country? Would you apply for this account?
     
  2. Alexandoy

    AlexandoyWell-Known Member

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    Some years back, I was offered a sort of locked account that can serve as investment for my retirement. The investment program was called Aspire where you can invest a minimum of $50 as monthly deposit for 5 years and your money will be doubled after 10 years (that’s a total of 15 years). But come to think of it, what if the bank closed? Or if we need the money badly? That 15 years is a very long time to wait for the proceeds.
     
  3. Nakitakona

    NakitakonaActive Member

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    What do you mean by "locked savings account"? I have been working for the bank for 5 years and I have never come across with this kind of account. What we have is the time deposit which has a duration of 3 months, 6 months or even a year condition to come into agreement by the depositor. Such time deposit account couldn't be withdrawn not until its maturity date. In case, it would be withdrawn the interest rate should be computed as a saving account.
     
  4. larryl332

    larryl332Active Member

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    I am not really sure that I even know what exactly that is or how to go about getting one. Maybe there is a language barrier of some sorts here too, and I may very well already have one.
     
  5. Decentlady

    DecentladyActive Member

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    Are you by any chance talking about fixed deposits? Because I am not aware of locked saving accounts. May be different countries use different terminologies or it could be a slang.

    In either case, I use the fixed deposit facility which works more or less on similar principle. It is a good way of saving cash for people who love spending lavishly.
     
  6. Jessika

    JessikaActive Member

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    In the UK we have two things that are similar. Notice accounts pay a higher rate of interest, but to get your money out you have to give 30, 60 or 90 day notice and you normally lose interest on the money you are withdrawing for that period. Some accounts do have exceptions.

    Then there are fixed-term accounts, where you put your money in for a fixed term, normally measured in years, and cannot withdraw it until after the end of that term, no matter what. At the end of the term all the funds are placed in a standard account, unless you want to roll it over for another full term.
     
  7. Jamille

    JamilleActive Member

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    You're probably referring to a time deposit account where you have to deposit a certain amount with a bank and let it sit and earn a little more interest than a regular savings account like what @Nakitakona@Nakitakona described. No, I don't have a time deposit or locked deposit account. I find that the slight difference in the interest rate is not commensurate to the effort of getting one, renewing, or claiming at maturity. There are banks that do offer the same, if not higher, interest on regular deposits and I'd prefer to open an account that I can access when the need arises.
     
  8. Nakitakona

    NakitakonaActive Member

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    You're right, @Jamille@Jamille . I am referring to the time deposit which doesn't earn much increase or interest. Instead of having that kind of account in the bank for the purpose of earning, it would be better to invest it for a viable investment program. Though it is too risky but yet it could earn more than a mere saving deposit or locked deposit as what being pointed out here.
     
  9. Rossy

    RossyMember

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    Personally I do not have a fixed account yet. I am not very much disciplined when it comes to money. I have been thinking of getting a fixed account to help me save up now that I got so much I need to do plus get that little interest advantage. Any bank or SACCO that you could recommend?
     
  10. luri

    luriActive Member

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    Sometimes I put money n fixed deposit bank acocunts. Fixed deposit accounts give you higher interest rates. in my home country, the normal saving accounts wll give you just about 3-5 percent rates, however, fixed deposit accounts can give up upto 13 percent interest rates. However, you need a big sum to set up a fixed deposit account. In case yo want your money back before the tenuer ends, you will have to apply for loan with your fixed account as your security bond.
     
  11. Barida

    BaridaActive Member

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    Putting your money on a locked account, which we know as fixed account here, can work in two ways if we don't plan well for it. First is the issue of putting that money and not been able to earn an amount aside from the money in the fixed account during the said period which may result in being financially incapacitated to meet your needs at that particular time. So, I think that having money in a locked account is nice if one can be able to earn enough to sustain during that period of having your money in that account.

    I am planning to save my money in a locked account in no distance time, but that will be at a period when I have other means of income generation so that having my money there to earn higher interest won't affect my standard of living. I am happy that my dad taught me that financial education at an early stage that helped me to build my awareness of how money works for us instead of us working for money.