Majority of investment company’s offer more than a once size fits all savings account i.e. passbook savings and statement savings.
A passbook savings account, is a record book in which your deposits and withdrawals are entered to keep track of transactions on your account; this book of recorded transactions must be presented when you make deposits or withdrawals. With a statement savings account, the institution regularly mails you a statement showing withdrawals and deposits for the account. Savings accounts are protected by federal deposit insurance. Generally, the government protects the money you have on deposit limited to an amount. Account features and fees may vary from institution to institution the next in shopping for an account, it's important to look closely and compare the various features.
Here are some of the most common features to compare:
Can the institution change the rate after you have opened the account? Does the institution pay different interest levels depending on the amount of your account balance, and what way is interest calculated?
How often is interest compounded? Is it daily or monthly?
Will you pay flat monthly fees? Will you pay fees if the balance in your account is below a specified amount? Are there charges for each deposit and withdrawal you make? Can you use ATMs with your account, and do they charge for this service? Are fees reduced if you have other accounts with the same institution? Are fees reduced if you agree to directly deposit your pay check or government payments?