A Savings Account is one of the most famous bank accounts that a people can invest in. It is an account that can be used for many distinction purposes.
In fact, there are several kinds of savings account that can be used for different needs. For many person, this is their first interaction with the banking and financial system. But, with a number of other investment sources becoming more attractive than a savings account, this account is losing its sheen.
Have Low-Risk. Savings accounts, by their very nature, don’t lose cash. In many investments, you’ll lose cash over the course of individual days, weeks, months or even years. But with a savings account, the balance won’t go down. It will only go up. (That is, until you take your money out)
This is a big mark in a savings account’s favor throughtout a downturn in the stock market, bond market or real estate market. In 2008, when the S&P 500 dropped nearly 40% of its value in a single year, savings accounts everywhere held all of their value and even growth in value.
The benefit of savings accounts here is that they’re safe from volatility. If it is imperative that you not lose value in the investment in the short term, then a savings account will accomplish that. Investments in the stock market, real estate and other products sometimes lose value over the course of a year, or even 3rd year or 5th year periods. That won’t occur in a savings account. If you can’t afford to lose some of your cash, a savings account is a proper place to put it.
Offers special value added services. Lots of banks recently offer value added services and advantages with a Savings Account. Some banks provides discounts on purchases with merchants or cashback or reward points on the ATM cum debit card. Along with that, many banks offer some basic form of accident or medical insurance, foreign travel insurance, and other kinds of insurance covers for opening the bank account. By selecting an account that gives these advantages, you can get more value. A Savings Account also provides passbook facility, net banking, cheque book facility.
Your kid’s education. The expense of education is rise. Everyyear, student fees increase, making it more hard to pay for education without going into debt. It is difficult, but with proper planning and commitment, you can make sure that your kid graduate from college debt-free. Having a minor savings account is the best bet, as it is targeted at kid.
