What are the advantages and disadvantages of a savings account?

Nowadays, it is more common for people to spend than save. With the endless array of the things and services available, money is so easily spent. However, we all know that this is not the ideal picture if we want to keep up and survive financially in this world. To start being prudent in managing your finances, the only place you would want your money to go is in the bank.

Saving may not be the first thing that will come to our minds when we talk about money; nevertheless it should be a priority especially these days when the economy is still unstable. Opening a savings account is one way to secure some amount of money for whatever purposes you have in mind.

There are benefits that a savings account can bring. First, with a savings account, money is less accessible so you avoid becoming an impulsive spender. When you don’t have the money in your pocket, then you can’t spend them immediately. Plus, if you keep your money in the bank, then it is safe from thieves.

Another benefit is the fact that when you have a savings account you are earning without doing anything. You can earn extra without doing anything. You only have to keep your money in the bank, allow it to sit there for several months and you can make your money grow! Keep in mind that the longer your money sits in the bank untouched the higher the interest your money could earn.

Another advantage is that unlike other investment tools, with a savings account, you can access your funds anytime. With a savings account you are not restricted on when you will make withdrawals. You have the liberty to take some money from your account in cases of emergency, when need to pay for a bill or when you have to buy an item (which you think you find anywhere else again). However this particular feature of savings account can also be a disadvantage. Without any restriction, you may just end up withdrawing all your savings as a result of your unrestricted access. This unlimited access can also post threat of theft. For instance your financial assistant may access your account without your knowledge and leave you with zero savings.

Well everything has a good and bad side. Your trust to something must not be based on the absence of its disadvantages for in reality that sort of perfection does not exist. Saving is an important part of your financial and it is the only way for you to become financially stable in the future.