There are many benefits of opening a savings account. Some are obvious and others you may not have known. If you are wanting to save some money and want to know more about how a savings account can benefit you, read below to see why opening a savings account is a good idea for many reasons.
Safety
One of the greatest and best-known things about a savings account is that your savings are guaranteed to remain safe, no matter what happens to the bank. The Federal Deposit Insurance Corporation (FDIC) can guarantee up to $250,000 of your cash that is stored in a savings account, therefore, you never have to worry about losing your cash. This can make saving an option for those who are worried about losing their cash in a different investment scheme.
Liquidity
With many investment schemes, you must apply to withdraw your money, but this is not always ideal. In a savings account, your money is always liquid – you can withdraw it at any time. If you have an emergency such as a heating problem in the home or your car needs a new part, you want to get it fixed as soon as possible, but you may not have enough money in your normal account. With a savings account, you can take the money out immediately.
No Conditions
Unlike some investment schemes or credit cards, there are no background checks for a savings account. You can open it up quickly, easily and with no fuss. There is no harm in opening a savings account, even if you are unsure if you’ll use it much. Even saving small amounts will still gain interest and your cash will add up before you know it.
Interest
Saving money over a long period of time can be extremely beneficial, as you gain free interest. All savings accounts offer different interest rates, and usually up to a certain amount of money. Before you open a savings account, shop around to see what deals are best and use a compound interest calculator to work out how much you could earn for free, just for saving your own money! It is a great incentive to start saving regularly.
Start Investing with A Small Amount
You don’t have to put a lot of money in a savings account to open one. Most banks will allow you to open a savings account with as little as $25. This is perfect for those wanting to save little and often, or perhaps for saving your children’s Christmas or Thanksgiving money for them to have as they get older.
Whatever you want to open a savings account for, whether it is for a new home, your children, or just to try and save a little extra money for a rainy day, it has never been easier and quicker. There are no background checks, a small amount of cash is needed to open one and you can earn interest for free.