Today’s environment is mainly characterised by instant gratification, so many people fail to save adequately. Saving for the future is often overlooked.
Banking institutions offer a wide array of savings tools and accounts. These come with a range of benefits, such as the ability to earn interest.
There are also other advantages of saving money with the banks:
Liquidity
Saving money with the banks often means that you have easy access to your money. You generally don’t have to worry about not having access to your money.
Easy to withdraw
Saving money with the banks is simple and convenient because you can withdraw money when you need it.
Safety of Money
Unlike in the past, where people saved their money underneath their mattresses, using a bank to save money has safety benefits. Your money is stored safely in a bank account.
Accumulate money for short term purposes
When saving, the money is generally easily accessible. It’s important to consider that money saving plans don’t offer an interest rate of more than 6.5%, which normally does not even beat inflation. In some cases, your savings will provide you with the capital to feed your investments. Saving comes with minimal risk.
Earn interest
You can earn interest on your savings, as opposed to keeping your money lying around in cash.
Easy to pay for bills
You can set up debit orders to go off your account so you won’t have to stand in long queues at the end of the month to make payments.
Can build an emergency fund
Saving money with the bank can be a good start towards building an emergency fund.
Don’t require a huge initial investment
Opening a savings account with the bank isn’t too costly.
Lets you link with your cheque account
You can link your savings account to your cheque account in some instances, which encourages better savings habits.