Opening a bank account is a very personal decision, indeed, and one may have a great number of reasons for making such a choice. However, in a day and age when saving money has become very difficult to do, it is uncanny to notice that many people would still rather save by alternative methods, instead of letting their money multiply, while they make no effort to this end.
Why keep cold, hard cash in your home? Why lend money to other people, in an attempt not to keep it at hand, readily available for random spending? If you’ve reached a level of responsibility and maturity where your personal income sources can allow you to save money, why not open a savings account with a safe, trustworthy bank? In what follows, we looked at three commonsensical reasons to start saving with a bank, and laid them out for your convenience. Read on, then go online, do some savings plan comparing and open your very own savings account , as soon as possible.
Avoid Binge Spending Indeed, one of the main reasons for which people have a hard time spending money, is that whenever there is a little extra cash lying around, we tend to take it for granted that it’s our ‘duty’ to make ourselves a little present. Whether it’s a night out on the town, a gadget we’ve been dreaming of, a new dress, or whatever may happen to tickle our fancy, extra money doesn’t usually survive in one’s pockets for too long a time. What is there to do about it? Open a savings account, of course. By selecting the right type of offer, you, too, can set a lock-in period for your account, which will prevent you from accessing those funds before they reach their maturity term. This is definitely the safest way to avoid shopping sprees and binge spending, as the alternative, of entrusting them with a friend, or lending someone money is risky to say the least.
Earn While Saving Do a simple Google search on savings accounts and you, too, might land on, as we did when researching this piece. What we found out is that the number one selection criteria which people take into account before deciding on one particular institution to open a savings account with is the interest rate. Different institutions will offer very different rates, which is why one should always do a thorough comparison of several offers currently on the market. Leaving the issue of eligibility aside, the general rule of thumb is that the longer you set your lock-in period for, the larger the interest rate will be. This is why, for instance, savings accounts that parents or grandparents open for children, have such advantageous interest rates. If you cannot afford a long maturing period for your savings account, or prefer the flexibility of a leeway of sorts (such as knowing that, should you be strapped for cash, you can always tap into your savings), you will probably opt for a type of account with a smaller interest, but large enough to make a difference nonetheless.
A Safer Future Of course, the best part about savings accounts is their psychological effect. There is possibly no better sensation the human brain can experience than that of safety. It has been scientifically demonstrated in several instances, that humans are a conservative species, who will choose security and safety over adventure and risk at any given time. As such, by opening a savings account you know will provide your child with a good college education, will help you out in times of financial need, or will help you purchase the car, home or holiday of your dreams.