Almost everyone aspires to greater financial capacity. Be it a dream house or wedding, family vacation or school fees, we find ourselves needing more money to be able to afford the things we need/want. An often overlooked but effective tool that can help in achieving these goals is a good ol’ savings account.
What is a Savings Account?
As the name implies, a Savings account is an account in which you set aside funds for a specific purpose, or rainy day. Most Savings accounts come with incentives which help you build the required discipline to reach your savings goals. Some of these incentives include competitive interest.
Benefits of a Savings Account
One of the major draws of savings accounts is that they are incredibly easy to open and operate as they require minimal documentation. Also, as previously mentioned, a savings account could help you earn interest. The interest rates may not be as high as some investment options offer, but unlike investments, the risk of losing funds in your savings account is almost zero. Your funds are secure in the bank and have the added benefit of being insured.
Another great benefit of savings accounts is that you can easily access your funds through digital channels like online banking and mobile apps. This can come in handy in case of emergencies. So, even if you have no immediate needs or goals to save towards, it is still advisable to save for the proverbial rainy day.
Now that you’ve seen its features and benefits, here’s how to utilize a Savings account to achieve your goals.