The Benefits of Having a Savings Account

In Benefits by Dorothy D. Joiner

Have you ever had someone tell you or mention that you should open a savings account? In fact, chances are either your parent or someone who appears financially savvy has said it to you.

As with each year, 2018 is the peak of the internet and in the last couple of years, has never been stronger when it comes to investments. Investing in things such as cryptocurrency has sparked a major hype on the internet. Making money now appears easier than ever before. That is, however, along with a lot of risks. Investments have delivered on increasing rates and massive returns that are far greater than that of, let’s say a savings account.

Some might say that a savings account is a traditional method of saving money and that it won’t bring any value to those of the millennial or generation X age. While in some sense that might be true as it won’t offer the same level of return as that of Bitcoin or Ethereum, it still does the job and quite decently too. It is also a much safer way of investment.

Any solid plan regarding your finances is built upon a foundation of assets, such as money, in your checking account. This type of account will, sure enough, handle your expenses daily but is not a good method for saving money. Point is, if you have direct access to it, chances are you’ll spend more money.

Benefits of a Savings Account

  • Safety – A savings account provides you with a Federal Insurance Deposit Corporation that insures a total of up to $250,000 in your savings account. If ever the bank fails to obtain your money, the FDIC will cover your deposits. The FDIC serves as a safety net for your savings account.
  • Accessibility – All the funds in your saving account is accessible during business hours. There are some banks that even allow you access with your card to make withdrawals at the ATM in case of an emergency.
  • Emergencies – As one of the biggest reasons to open a savings account, having such an account in case of an emergency will never be more welcomed by you. If ever you find yourself losing your job or having to pay an excessive medical bill or even a close family member, a savings account will come in handy at any time.
  • Unexpected expenses – Sometimes, more often than none, life happens and there are times when we all desperately need that extra bit of money. Not to be funny but sometimes your car needs new tires, perhaps you need to make an urgent unexpected flight, or you simply must pay the bills. Whenever life happens, a savings account will be the most appreciated friend of your life.

All in all, having a savings account can only provide you with a range of benefits. In addition, it will also discourage reckless spending and encourage financial stability. You have everything to gain and nothing to lose.