Opening a savings account: what are the possibilities?

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Opening a savings account

Do you want to open a savings account to put money into? This can be done in various ways. For example, you can save alone or together. Read on and discover how saving works, which savings accounts exist, and what to look out for when opening a savings account. Plus, soon you will also be able to save at BUX!

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What is a savings account?

A savings account is an account into which you deposit money to keep it safe. In exchange for parking your money with the bank, you usually receive compensation in the form of interest. This interest can be variable and change on an annual or quarterly basis. You can usually withdraw your savings at any time, depending on the conditions of the account.

Why a savings account?

A savings account forms the basis of healthy personal finances. You use saving primarily for security and peace of mind. Think of:

a financial buffer for unexpected expenses;
short-term savings goals, such as a trip or a large purchase;
money that you do not want to expose to risk;
creating savings pots for various goals.

What types of savings accounts exist?

There are several ways to save. The main types of savings accounts are:

the standard savings account;
savings accounts with conditions;
fixed-term deposits.

Additionally, there are accounts for special applications, such as children’s savings accounts and bank savings accounts for pensions. Below, we tell you more about the first three.

1. Standard savings account

A ‘standard’ savings account is also known as an ‘instant access savings account’. Savers can withdraw money whenever they want, often without costs. Additionally, you can deposit money at any time or set up an automatic monthly amount. This form of saving usually has a variable interest rate, which means the interest can change. The interest can differ per balance or per balance tier.

2. Savings account with conditions

With a savings account with conditions, restrictions apply depending on which bank you are with. At one bank, you can deposit money freely whenever you want. At another bank, you must deposit a mandatory monthly amount (that you have chosen yourself).

These conditions also apply when withdrawing money. At one bank, you must indicate in advance how much money you want to take from your account. At another bank, you must leave your money in your account for a certain period to receive interest.

Saving with a variable interest rate remains common even with a savings account with conditions, meaning the interest can change.

3. Fixed-term savings account

A fixed-term deposit is saving with a fixed interest rate and a fixed term. You lock your money away for a longer period and gain certainty about the interest during that period. This could be, for example, one year, five years, or even twenty years.

Saving with a fixed interest rate offers predictability, but you can only deposit an amount once. It is often not possible to put extra money into the account. Withdrawing in the meantime is also usually not possible.

Other option: investing savings

In addition to saving, you can choose to invest (a part of) your savings. For example, with a broker like BUX. Many people combine saving and investing: a buffer in the savings account and the rest focused on growth.

Whether investing is wise and suits you depends entirely on your personal goals. Therefore, ensure you are well-informed before you start investing.

How do you choose a savings account?

How you choose a savings account differs per person. The goals you have may be completely different for someone else. To choose a savings account, you can ask yourself the following questions:

Do you want to be able to access your money or not?
Can you spare the money for a longer period, or do you need savings in the meantime?
is it possible to set aside a large amount at once?
Do you save a fixed amount every month, or do you need flexibility?

Which bank is suitable for a savings account?

You can open a savings account at various banks in the Netherlands and abroad. For instance, you can open a savings account at the same bank where you have your current account. But you may also open a savings account at a different bank.

Can I just open a savings account?

In most cases, you can easily open a savings account. When opening a savings account, you must confirm your identity with a valid proof of identity, such as a passport or identity card.

What should you look out for when opening a savings account?

When opening a savings account, always pay attention to the interest, any costs or minimum deposits, and the conditions for withdrawing money.

The interest (variable or fixed): With a variable interest rate, the interest can change, for example, per month or per quarter. A fixed interest rate remains the same throughout the term.
Possible costs: At some banks, there are costs associated with opening an account. Check this in advance so you do not pay unexpectedly.
Withdrawal conditions: Not every savings account is completely instant access. Sometimes you may only withdraw money a limited number of times, or you pay a penalty for interim withdrawals.

In addition to the three points above, it is wise to check the bank via the reliability check of the AFM. Also check whether the provider falls under the Dutch deposit guarantee scheme (DGS). This scheme protects you up to €100,000 per account holder per bank and is supervised by De Nederlandsche Bank (DNB).

Coming soon: saving at BUX

Soon you will be able to open a savings account at BUX, in collaboration with ABN AMRO, without a current account but with an attractive interest rate. Simply via the BUX app. In doing so, we want to offer multiple savings options, such as flexible savings accounts and term deposits, so you can choose what best fits your goals.

This new savings solution is separate from the current ‘Interest on cash’ and is also suitable for people who exclusively want to save, without investing.