What Can I Gain by Opening a Savings Account?

Before we can answer this question, we first have to distinguish between what a savings account and a checking account. There are a lot of people who are grappling with the idea of what kind of account to open. Most people think that all bank accounts are the same: an account to save money.

The main difference between a checking account and a savings account is that the money used in a checking account is used for everyday expenses. But perhaps the more important distinction is that it is more beneficial to open a savings account compared to a savings account. Many would be surprised that banks are more likely to reward individuals with savings account.

There are also many other advantages that could be cited on why it is a good idea to open a savings account. First and foremost is safety. Rather than keeping a huge amount of money at home, it would be better to entrust it to the bank. Why? Homes are more likely to be targeted by thieves and robbers rather than banks. Since we spend most of our time outside the house, it would be a lot of toll in our part to constantly worry if money kept at home is still safe.

Another good advantage is that a savings account could be a good source of emergency funds. We are always faced with contingencies no matter how careful a planner we are. Thus, it is always wise to set aside a rainy day fund so to speak. This is to assure that if an expected emergency will arise, we are not left hanging.

When speaking of contingencies, one cannot help but talk education in terms of college funds. We all recognize that education is a good investment, so it is but proper that we allocate resources for this. This is especially important for parents who are planning to have children. They could set up a separate savings account for their children as soon as they are born. That way, the college education of the child is ensured.

Of course, one should not forget that money in savings accounts are insured by the federal government. Unlike keeping the money at home which poses as a huge risk owing to burglary and thievery, the same is not a case in banks. Even if the bank folds, there’s an assurance that individuals would not lose their hard-earned money.
These are but some of the reasons why opening a savings account is always a good move.