Saving money may not be an attractive idea considering the array of temptations that you come across every day. You may want to splurge your money on your favorite brands, luxury holidays, and eating out or just for the sake of spending money. But as the saying goes, a penny saved is a penny earned. Saving some money for tough times is always a bonus and a strategy of smart planners. However, it is not just putting your extra cash in the piggy bank as you need to plan well to make your money grow while you save. The best way to do it is open a savings account as there are many reasons that make it an attractive proposition. Her are 5 of them:
- They keep your money safe
The best part of the deal is that they enable you to keep your money safe. Most of the people tend to fall prey to the desire to use their savings recklessly and make useless expenditures with them. But putting your money in a fixed saving bond is a smart step that simply locks up your money for the term period of the bond. In such a case, you will not be able to withdraw the funds unless you pay a heavy interest penalty, something that most savers would not want to do. At the same time, if you foresee emergency needs in the coming time, you can opt for easy access savings accounts, which allow you to withdraw money in case of a sudden requirement. Still, a majority of savers prefer not to break their savings account unless absolutely necessary.
- They get you interest returns
Another reason that makes savings account an attractive proposition is that they get you returns in the form of interest. Simply speaking, you can earn as you save. But as a smart investor, you need to consider the interest rate that your saving is fetching for you and compare it with the market rate to ensure that you are not at loss. You can even consider a transfer for your savings if you feel that they are not making you enough money. Go through this post to get an idea about the best ISA transfer rates and be a smart saver.
- They help you to cultivate a positive habit
Saving is a positive habit that enables you to secure your future and save money for any emergencies that may come up. Having enough money with you makes you vulnerable to bad habits such as shopping aimlessly and wasting money. But having a well chalked out saving strategy keeps your finances on track. Regular savings accounts are the best options for those who want to cultivate this habit as these accounts require you to put in a specific amount in your account every month.
- They enable you to grab opportunities
With a saving plan in place, you will never lose an opportunity because of lack of resources. For instance, you may come across a lucrative business proposal at some point of time but might have to miss the opportunity just because of the dearth of funds. Similarly, you may want to buy a house in near future but a great deal comes up suddenly before your expect. This is another opportunity that you would not want to lose. Having a savings account enables you to arrange money whenever needed and grab the chances that life throws at you.
- They help you plan the future
Yet another reason that you should have a savings account is that it helps you plan your future and make sure that it is secure and happy. Plans may vary from person to person but the purpose is always the same- to have enough funds when you need them and this is exactly what a savings account does. You may want to save up for buying a house, sending your child to the college or simply having a secure and comfortable life after retirement. Having a savings account helps as you can set aside your money for as much time as you want and can get it back when you need it for the purpose. It gives you the peace of mind that everything is covered up well enough.
Putting your money in a savings account makes you a smart saver who knows how to keep his money safe and earn premium on it as well. Just make sure that you choose the right kind of account so that you can acquire maximum benefits from it.
