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Advantages of Saving Accounts

Advantages of Opening a Savings Account

Opening a savings account is widely preferred because of its numerous advantages. You can start an account with a certain amount and continue depositing money into it every month. Do not worry if you don’t have a lot of money to invest initially into a savings account. Most of the banks will quote a less value to open one. This initial amount varies for each bank. You can take the money and use it whenever you want or save it for future use. Some private banks require its customer to keep a minimum balance all the time which may sometimes be on the higher end. Failing to maintain this minimum balance might lead to a penalty fee.  This has its own advantages. With a savings account you get full access to your money. When you have a restriction of retaining a particular amount each month with the bank, you will not be tempted to spend that cash.  Moreover if you keep your expenses to the minimum and keep adding money to the account every month, it will yield a high rate of interest. The good news is, there is no restriction on the number or amount of deposits you make every month. Some banks would require an ID proof if a deposit exceeds certain limit. You can keep your money in the back for a maximum period of time. The bank will know that money keeps coming in on a regular basis and the rate of interest, naturally is increased. You don’t have to worry about burglary or theft since you can be rest assured that your hard earned money is very safe with the bank.

Your Deposits Grown in Savings Account

 If you have to take care of any unforeseen expenditure you can always withdraw the money from the teller at the bank or the ATM which allows unrestricted access. Choose a short term or a long term goal and start saving. When you save for a longer period, your investment starts to grow and so will the interest rates.  You have to read their policies, terms and conditions before parking your money in a bank.  Even if there is a dip in the market you can live worry free since the yield that you will get with your money will not take a dive.

A Word of Caution

Every scheme introduced for the welfare of people has its own merits and demerits. The ease of accessibility to your account could have a detrimental effect on your saving plans. When you know that you are the sole controller of your money and it is accessible anytime, you are prone to spending it without thinking about the bigger picture. You might end up using it for shopping or other trivial expenditures. When this happens, the interest rate takes a plunge which could turn out to be unprofitable. Though there are a lot of schemes to promote saving, the decision lies upon us on how we make use of these plans.  We have the power over money and it lies upon us to save it in a better manner.

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