5 Benefits of a Savings Account

by TTMK on March 31, 2013 · 1 comment

Do you currently have a savings account? Have you ever really stopped to think about the benefits that you might be receiving by having one? In my mind, there are at least five simple reasons why you should have a savings account

1)      Fixes The Hole in Your Pocket – I don’t know about you, but when I have a bunch of cash sitting around, all I do is think about spending it. I don’t do it consciously of course, but since I know it’s available to me, and it’s so accessible, sometimes it’s just hard not to spend it! By having your money in a savings account, it just adds another step to the purchasing process, which hopefully allows you to think a little bit longer about that purchase that you don’t necessarily need.

2)      Interest Bearing – If you typically keep a few wads of money at home, rather than depositing them into a savings account by HSBC or some other multinational bank,  you’re missing out on free money! Not only will the bank protect your money while it’s within their 4 walls, they’ll also pay you to have it. The reason they do this is because they can actually make a higher percent by loaning out a portion of your money to others.

3)      Safety – Just as I alluded to in the comments above, not only is your money completely safe while it’s within the confines of the bank, but it’s also a safer place than keep your money than at home. There are still quite a few people out there that don’t trust the banks due to the banking issues during past crises. So what do they do with their money? Some of them keep a pile under their mattress, while others hide their money in old coffee cans. I imagine there’s a few that are more traditional and keep their money in a safe with a combination. So let’s say your house started on fire. Wouldn’t your flimsy paper money be the first thing to catch on fire? And wouldn’t it be more likely for your money to be stolen by intruders than it would if it were at the bank?

4)      Develop a Relationship – Not only does the bank offer savings accounts, but they can also give you loans for purchasing a home, or perhaps buying some rental property, or a new car. If you already have a savings account established with them, it will be much easier to get approval for your loan. They can check your history by simply opening up your account and taking a direct look! If, however, you don’t have an account, you will be a much higher-risk candidate, which might mean that you won’t get that loan that you desire.

5)      Easy to Put Money In – One of my points stated that a savings account is best because it adds a step in the purchasing process. There’s a chance that you might not make your stupid purchase because you have some time to think about it. Well the opposite is true about putting money into an account. If you would get a paycheck from your work, it would be completely worthless to you unless you went to a bank to cash it. If you have a savings account, you could set up a direct deposit and the money would be deposited directly into your account without you ever having to touch it.

{ 1 comment… read it below or add one }

Russell@retirementsavingsingold April 23, 2013 at 8:20 pm

All great points that leaves anyone with no excuses as to why they don’t have a bank account, myself included. Keeping money with an institution does force you to think about that impulse buy before you make it, because that extra step is required to take out cash from the bank. I think we should all learn to have a little money close to us at at home without giving into temptation. Can it be done…I think so!

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