Saving Service - Free Essay on Personal Finance

Having a savings account is an important decision because it creates a saving culture such that at old age, individuals are not likely to face problems. A savings account also means that after some time, an individual can engage in business activities that can help them generate income. It is, therefore, important for an individual to find a bank that provides the best terms of a savings account. In QNB, there are several categories of savings account one can benefit from. This paper discusses how one can open an account with the bank and the benefits associated with the account as well as the disadvantages.

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The bank has several savings accounts from which one can select from. There is the normal savings account, foreign currency savings account and Tawfeer plus savings account. The difference in the savings accounts is the minimum account balance that one must maintain to earn interest and the currency that one can use to bank with the company (Barbara, 2005). The various accounts have various benefits, and one has to choose a savings account that best satisfies their needs.

To have a savings account at QNR, one can follow a simple procedure online to create a savings account. What they need is a copy of their national ID or a document to show that they have permission to live in any of GCC countries. The individuals have to provide their contact details such as a valid email account and a telephone number. For those who can access any branch, they are required to carry a national ID or a passport or a document showing that they are allowed to live in any of the GCC countries. The ID is prove that they are of the age of majority. They are requested to provide details of their employment. They have to provide the minimum account balance for their selected savings account.

The competitive advantage of the savings account is that it has additional benefits to those of a current account. Individuals can withdraw any amount that they wish to any time, and also have an ATM card that can help them do so. These are some of the features of a current account. In addition, they earn interest on the minimum balance they maintain for a month (QNB, n.d).

How the savings account work in practice

One needs to open a savings account and deposit an amount that is above the minimum balance of the account. They have to be patient and should not withdraw the amount up to the end of the month. They can then get interest at the end of every month.

Strengths/advantages of the account

The account earns interest for the customers as compared to the current accounts of the bank and those of other banks. It also allows people to monitor their deposits withdrawals online hence saves costs since one does not need to travel to the bank constantly to get statements. One can also make transactions such as sending money to other accounts using online and other electronic platforms. One also gets an ATM card and is allowed to withdraw the funds in case they have emergencies and cannot wait till the end of the month (QNB, n.d).

Disadvantages/weaknesses

The savings accounts favor people who have huge earnings because they have to maintain a certain minimum balance that may not be affordable to all. Some of the benefits that the account has done not benefit people who are not conversant with modern technologies and have to move to the branches to get the services. When people have emergencies and have to withdrawal the funds, they lose interest regardless of whether their cash was in the bank for more than three-quarters of the month.

Conclusion and Recommendation

People need to develop a saving behaviour and QNB offers a good account for that. One should consider their financial needs and then select the best savings bank that gives them the maximum benefits and at the same time does not lead to any personal inconveniences. This is the only way to ensure that one does not keep idle money in the bank that could have earned them interest.

References

Barbara. (2005). Qatar National Bank opensIslamic division | GulfNews.com. Retrieved from http://gulfnews.com/business/sectors/banking/qatar-national-bank-opensislamic-division-1.291561

QNB. (n.d.). QNBQatar - Savings Accounts. Retrieved from http://www.qnb.com/cs/Satellite/QNBQatar/en_QA/PBanking/SavingsAccounts/enSavingsPlusAccount

QNB. (n.d.). QNB ALAHLI - Tawfeer Plus Savings Account in EGP. Retrieved from http://www.qnbalahli.com/Retail/Deposits/TawfeerAccount/Pages/default.aspx