Is it beneficial to open a savings account?

Definitely yes. It is to the customer’s advantage when he/she opens a savings account. There are several reasons for this. First, if you have such account, you learn to save. Saving cash no matter how little it is can change your attitude towards money. You learn to handle your daily expenses and monthly bills. You may find out later that you will not have a chance to live your life from paycheck to paycheck. This is the irony of knowing how to save especially for “rainy days”. Although savings account cannot be used directly as money because it needs to be in a check, it is still considered near money.

Second, what you save in your account will earn an amount of interest. The amount of interest depends on the bank you have chosen to keep your fund. There are banks that offer higher rates than others. Thus it is wise to shop around to compare interest rates.  It pays to look hard enough if you have the patience. You can cultivate your savings this way in due time. However, pay rates are a lot lower for Savings Account compared to other forms of accounts like the checking account.

Protection is another benefit having Saving Account. You are sure that your cash is in good hands because most banks are regulated unlike before. Further, customer’s funds are bolted in a fireproof place. Alternatively, if you put your cash in your house, it is vulnerable to be robbed by thieves and be burned out in cases of fire. Apart from this, banks insure your deposit up to $100,000 worth. Insured deposits mean you can still claim your money back even if the bank will be out of business.

In like manner, if you carry your money with you, you might leave it somewhere without the assurance of you retrieving it back aside from it not earning interest. Holding cash when going around with friends might also lure you to spend more than expected. Remember, money is evil. It is tempting. The best way to control the urge of unnecessary buying is not to carry cash around.

Lastly, in times where you are in dire need of cash, you have something to use because you can withdraw from your savings account anytime through ATM, internet or the traditional method of visiting the bank. It is convenient for financial emergency situations.