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As it’s separate to your current account, it can also help you get into the habit of saving and reduce the temptation to spend.
You can use a savings account to put money aside for something specific, like a family holiday, or an emergency fund to cover any unexpected costs. Choosing the right savings account can help you manage your money well.
In this article:
What’s the difference between savings and current accounts?
Different types of savings accounts
A savings account works slightly differently to a current account. Knowing the differences can help you make better financial choices.
| Feature | Savings account | Current account |
|---|---|---|
| Purpose | Setting money aside for the future. | Everyday spending. |
| Interest | Usually pay higher interest. | Little or no interest. |
| Access | May limit your withdrawals. | Immediate access. |
| Fees | Often lower fees but extra withdrawals may cost more. | Most accounts have a monthly fee, unless you maintain a high balance. |
| Feature | Purpose | Purpose |
|---|---|---|
| Savings account | Setting money aside for the future. | Setting money aside for the future. |
| Current account | Everyday spending. | Everyday spending. |
| Feature | Interest | Interest |
| Savings account | Usually pay higher interest. | Usually pay higher interest. |
| Current account | Little or no interest. | Little or no interest. |
| Feature | Access | Access |
| Savings account | May limit your withdrawals. | May limit your withdrawals. |
| Current account | Immediate access. | Immediate access. |
| Feature | Fees | Fees |
| Savings account | Often lower fees but extra withdrawals may cost more. | Often lower fees but extra withdrawals may cost more. |
| Current account | Most accounts have a monthly fee, unless you maintain a high balance. | Most accounts have a monthly fee, unless you maintain a high balance. |
The rate of interest and terms – for example, how many withdrawals or deposits you can make – will vary depending on which account you choose. So take the time to find one that’s right for you and make sure you meet the eligibility criteria before applying.
Here are some of the different types of savings accounts.
A regular savings account can be useful if you want to dip into your savings from time to time, but the interest rate may be lower compared to other savers.
An HSBC Savings Account is available in these currencies:
It has no fee for withdrawing cash or checking your balance[@what-is-savings-account-footnote]. You can also manage this saver on the move through online and mobile banking.
If you have a long-term savings goal – or just don’t think you’ll need to use the money in the short-term – a term deposit account may be right for you. You’ll need to lock away your money for a set amount of time (a term), but you may get a higher rate of interest than on a regular saver.
You won't be able to make a withdrawal with a term deposit - when the deposit is place, the principal amount is locked until the deposit matures.
If you uplift the deposit after 30 days, you may lose interest. Refer to your key facts statement for more information on the conditions of your term deposit account.
With an HSBC Term Deposit Account, you can choose the length of the term – from 1 to 36 months. You can also choose whether you want to save in AED, USD, or GBP.
Explore: What is a term deposit account?
You may be able to open an online saver through your bank account.
For example, if you're looking for a slightly higher rate of interest than a regular saver, but still want to be able to access your funds, you may want to consider an HSBC E-Saver Account. There are terms on this type of savings accounts to stop you dipping into your savings too frequently, such as no debit cards.
An HSBC E-Saver Account can be opened through online banking. It has no monthly account fee, competitive fixed interest rates, and no minimum balance requirement. You can also add to your savings pot through monthly recurring payments, or lump sum deposits.
You can manage an E-saver through online banking or via the HSBC Mobile Banking app.
HSBC E-Savers are only available to UAE nationals and residents who hold valid UAE residence visas, and can only be opened in Dirham.
Manage your savings and watch them grow online.
Pros
Cons
To open an HSBC savings account, you need to be at least 18 years old and be a UAE national or have a valid UAE residence visa.
You’ll need to have the following documents ready:
You may also need extra documents if you’re self-employed or on a family sponsorship. If you’re opening a joint account, you’ll both need to visit a branch or customer service centre with your documents.
Saving and financial planning are a key part of building a secure future. Having a financial plan can help protect you against future challenges and leave a lasting legacy, according to the HSBC Quality of Life Report 2024.
"When it comes to wealth management, people value certainty and security above everything else – planning for and protecting ourselves, our loved ones and the next generation. By making a financial plan for the future, we are also helping to secure our Quality of Life in the present," said Jenny Wang, Global Head of Personal Banking and Premier Wealth Solutions at HSBC.
With immediate access to funds in an emergency, it also gives you peace of mind and the security to focus on your bigger goals.
No matter what you’re saving for, the right savings account makes managing and growing your wealth simpler and more effective.
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