6 Reasons Why You Need A Bank Savings Account
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| Importance Of Savings Account |
A savings account is likely the simplest type of bank account available to consumers. It allows consumers to store excess cash in a secure location (an insured bank or credit union) all while earning interest on the balance.
A bank savings account is a type of account designed to simply hold money that you do not need immediate access to. When contrasted with checking accounts, bank savings accounts tend to pay a slightly higher rate.
A bank savings account is a type of account designed to simply hold money that you do not need immediate access to. When contrasted with checking accounts, bank savings accounts tend to pay a slightly higher rate.
The following are the important reasons why Bank Savings accounts are needed.
1. You Can Easily Access Your Money In A Bank Savings Account
Savings accounts offer easy access to your cash. In other words, your money becomes liquid in a bank savings account. This means that you can make a withdrawal easily and quickly.
Note that savings accounts are not as liquid as checking accounts, because you can get money from a checking account by simply writing a check.
2. You Get Peace Of Mind
There is a certain emotional satisfaction in having a few thousand dollars in the bank. If you get laid off, if your business goes under, if your bread-winning spouse leaves, you'll have something to cover your bills for a while, giving you time to plan.
3. Your Money Grow In Bank Savings Accounts
A percentage of the principal is paid as a fee over a certain period of time (typically one month or year) and this is called the interest rate. A bank deposit will earn interest because the bank is paying for the use of the deposited funds.
Whenever you have money in a bank savings account, your money earns interest.
Your bank savings account pays a rate of return on all the money in the account. That means that you get "paid" for keeping your money in the account. If you were not going to use the money anyway, then getting paid a little is better than nothing.
Bank savings accounts pay you more on your money than checking accounts.
Bank savings accounts pay you more on your money than checking accounts.
4. Asset Protection
The returns associated with savings accounts historically have been lower than those of other investments, such as stocks, bonds and real estate. But tying up all your money in speculative or illiquid investments for the possibility of a higher return means you may be forced to sell at an inopportune time to take care of an unanticipated expense. Having a savings account can insulate your investment portfolio from loss through forced selling.
5. Your Money In A Bank Savings Account Is Relatively Safe
Bank savings accounts offer a safe place to keep your money.
Bank savings accounts offer a safe place to keep your money.
Suppose that you have GHC 1,000.00 and you're not going to use the money for another 3 months. There are several things you could do with the money. You could either carry it around with you, you could put it under your mattress, or you could put it into a bank savings account.
The safest and the best thing to do with your money is to put it into a savings account.
You might encounter the risk of theft of your money or misplace it and lose it if you carry the money around with you, If the money is under your mattress, your house could burn down or be robbed.
The safest and the best thing to do with your money is to put it into a savings account.
You might encounter the risk of theft of your money or misplace it and lose it if you carry the money around with you, If the money is under your mattress, your house could burn down or be robbed.
However, if the money is in a bank savings account, your banking institution is responsible for the safekeeping of that money. If the bank burns down, your money won't go with it, and any reputable bank will not just lose your savings.
Furthermore, you earn interest on the money in a savings account. You don't earn interest on cash that is sitting under your mattress.
Imagine the consequences that will occur to you if you didn’t use a bank savings account. You could miss your mortgage payment, for example, or you could wind up having to work when you’re unable to work.
Furthermore, you earn interest on the money in a savings account. You don't earn interest on cash that is sitting under your mattress.
Imagine the consequences that will occur to you if you didn’t use a bank savings account. You could miss your mortgage payment, for example, or you could wind up having to work when you’re unable to work.
6. It Helps You In Leveraging On Opportunities
Having savings allows you to take advantage of potentially lucrative financial opportunities. If you stumble upon a once-in-a-lifetime business opportunity, you may lose out if you do not have adequate capital to invest.
Also, if you try to obtain credit with your bank for any reason, a robust savings account can enhance your prospects of success. A savings account can communicate stability and discipline to a loan representative.
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