A savings account isn’t just a place to park your money, but it is also a tool that can help you meet your money needs. Whether you need to put your money into a savings account for the short term, or if it is an integral part of your retirement plan, a savings account can help you manage and plan for your money needs.
The first thing that is great about a savings account is access. 20 years ago, having a savings account meant that you had to go to the bank to transfer or withdraw your funds. It was harder to use than a checking account (where you could just write a check), but it was safe and obviously cheaper than a www.paydayloansonline.com. However, now with online banking, you can access your savings anywhere, and transfer funds as needed. This gives you the benefits of a savings account (earning interest), while still maintaining easy access.
Safety and Security
Savings accounts also provide safety and security for your money. When you apply for a savings account, you do so at a bank or credit union, which is FDIC insured. This means that as long as your balance is under the FDIC minimum, you will never lose money by keeping your account at the bank.
Keeping your money at a bank is also infinitely more secure than storing large sums of money at your home.
Finally, a savings account can help you budget. Many people use a savings account as a place to store their emergency funds, which is their savings in case something unexpected comes up. A savings account is a great tool for that, since the money is safe, and it earns interest over time. Also, since it is separate from your checking account, there is less incentive to spend the money.
Many people also open multiple savings accounts for multiple goals. For example, there could be a college savings account, a vacation savings account, and more. This allows you to set aside specific amounts for specific goals, all while having the safety, security, and access of a savings account.
Post by Robert