The road to financial freedom begins with choosing a solid portfolio. While some seek to have investments in mutual funds, some have a checking account.
A saving account is one of the most solid additions to your portfolio. Opening such an account is an important part of your long-term financial planning. Banks offer numerous features and benefits on such an account, thus making it an attractive option.
Following are ten major reasons to open one today.
One of the major reasons to have a savings account is the level of security offered. Once you have deposited your money in such an account, you are rest assured that it is protected. Therefore, you need not worry about losing your investment.
- Growth of money
Banks offer a certain percentage of interest on such accounts. Some banks even offer a 6% interest rate, thus allowing your invested money to grow and multiply.
- Easy access
Banks allow customers to access the money in the account as and when they need it. This means you may withdraw your money at your local bank branch or may use the ATM card issued by the bank to withdraw funds.
- Meeting financial goals
A bank account facilitates achievement of a certain financial goal such as the purchase of a new vehicle or home remodeling. You may easily track your progress towards your financial goals and meet them quite easily.
- A disciplined habit of saving
Not having a bank account may make you spend impulsively. Having such an account inculcates the disciplined habit of saving. You may, therefore, have peace of mind, knowing that you are making smart decisions with your earnings.
- Emergency fund
Life may throw unexpected events such as medical emergency, home repairs, sudden job loss, and vehicle breakdown, among others. Hence, you may build an emergency fund and deposit it in a saving account. This helps in being financially prepared for unforeseen circumstances.
- Easy setup
Opening a bank account is an easy process. You may visit either your local branch or the bank’s website. You simply have to fill the account opening form and submit the necessary documents, thereby helping you open an account easily.
- Multiple options
Some banks offer a choice of options to suit individual requirement needs. Some of the available options are a family account, women’s account, and kid-specific account, among others. You may make the right choice and meet your savings goal optimally.
- Low fees
The good news is that certain banks do not levy a transaction fee on such accounts. Besides, you do not have to pay any monthly account fees.
- Automated option
You may have to pay certain utility bills or make regular payments towards your home loan or education loan. In order to avoid the hassles of setting a reminder every month, you may simply give a standing instruction to the bank to pay the set amount at regular intervals.
Opening a savings account is one of the best decisions you may take to remain financially strong at all times.