What are the advantages of having a savings account?

+1 vote
asked Jan 14, 2018 in Other-Finance by Pearsall (270 points)
What are the advantages of having a savings account?

1 Answer

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answered Jan 17, 2018 by Judy (56,120 points)
Everybody should have a savings account if they can afford the money to set one up and the money to add to the savings account every month.

When you save your money say in a safe at home your money doesn't grow with interest and it's at risk of being stolen during a burglary.

But with a savings account your money is insured against theft in the event someone robs the bank.

Another added benefit from having your money put into a savings account is that the bank will pay interest on your money so over the years your money will actually be more than you originally put in each month.

Lower interest rate savings accounts usually earn you around $50.00 per year depending on the amount of money you put into your savings account each year.

The more money you put into your savings account each year the more interest you will have earned at the end of the year.

Other advantages of having a savings account is that you'll have money available in emergencies should you need to take it out.

Avoid taking the money out of the savings account though unless absolutely necessary as you could face a penalty for early withdrawal on your money.

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