Saving money is the foundation of huge empires and is a habit in practice which is passed from generations to generations for a better future ahead.

Saving money is something everyone must do, no matter how less or how more you have left to save, just save. This habit is considered to be a very good habit and one day the money saved will be of fruitful use. Nobody knows about future and everyone has to retire sooner or later so at that point of life your savings may have a positive impact on your well being when you won’t have to worry about arranging funds for the rest of your life.

Previously people used to save money at home by keeping their money in an envelope or in a box at home, however the changing times have brought a significant change in how people manage their savings now. Many banks are nowadays offering saving accounts options for everyone and a lot of people are taking the maximum advantage out of these accounts as well. Also, there is no age limit for saving, even if an individual is a student he or she must start saving today the sooner you start the better you will have in future.

How Could a Saving Account be Beneficial? (i)

Many people do save but they save at home and still they don’t realize how much of benefit would savings account bring for them, here we have highlighted the main factors which offer a lot of benefit for a person to get a savings account.

  • When it comes to assessing the savings account options the most important thing is growth of your money through interest. This doesn’t happen when you save at home, it may be possible that your bank gives a minimal savings account interest rate but the catch is that it does and gradually your sum will have an increased value which won’t be the case at home.
  • Your money is secure with the banks in their savings accounts as every individual account holder is insured and any loss if ever happens is compensated by the bank, so the hassle of loss is totally out of question which may not be the case at home.
  • You don’t need huge sum of money for having the savings accounts in place, even if you have minimum amount of money you may easily get yourself a savings account and this always amounts to be a plus point for you.
  • You can easily withdraw your money anytime you want; in fact you can also transfer money from one account to another without any hassle or restriction at all.
  • Many savings accounts are no monthly fee saving accounts which means if you have kept a limited sum of money in your account, your monthly fee will be waived and this will definitely be a plus point for having such accounts in place.
  • If you need to earn a significantly increased and high sum of money on your savings you may also opt for the high yield savings account which will give you return more than the normal standard saving account but will have its own pre-requisites, people planning to have huge investments tends to opt for such accounts.

Managing Finance with Savings Account (ii)

When you have a thought in mind that you should have a saving account in place a few things which you must consider before finalizing the decision may include the following:

  • Never confuse savings and investment; these are two things which work differently. When it comes to investment you are bound by it you cannot withdraw your money as you like. However, with savings account you may easily withdraw your money anytime you need be it emergency or whatever situation.
  • Even if you are keeping a little amount of money in your savings account you will be able to generate a huge sum in the longer run, this could be a plus point, so keeping money at home may tempt you to spend here and there whereas an account won’t, this way you will be able to secure your future.
  • You can set a fixed percentage for savings, whenever you get your salary you may take that percentage out and put it in the savings account, this way you will always have a satisfaction that you have saved every month and then spend the rest on your expenditure.
  • If you have debts on your shoulders make sure to get rid of them and then plan the savings, when you have debt to pay back you will always have a burden and this will haunt you a lot, it will even disturb your budgeting. So, before you start saving make sure you have paid all your debts so that you may consistently save money.
  • Always think about future, there are people who spent their early years in hostels and now own a huge house all this has been possible because of their habit of saving and this could be achieved by way of choosing the right interest yielding savings account which will cause a lot of benefit in the longer run.

Therefore, when it comes to opening up savings accounts make sure to analyze a few factors in advance regarding your chosen bank:

  • The rate of interest to be earned savings account.
  • The required balance maintained in the account.
  • The condition of withdrawals, as some banks allows a certain number of withdrawals in a year.
  • The amount of money required to open a savings account.

Always be clear on the terms and conditions by the banks as this will give you a clear vision as to what savings account be like in the future and you will be able to manage your funds with a positive start, you may find this habit a bit bothersome in the initial years but when you will see your money growing you will be much content.