People often opt to use checking accounts to keep their money stashed away in the bank. However, if you’re just keeping all of your funds in a checking account, odds are good that you’re not saving enough.
You should consider opening a savings account to help grow your funds! Today we’re going over all the reasons you should invest in a savings account.
Why to Open a Savings Account
Why Bank Accounts?
Some people prefer to just deal in cash. While this has the benefit of being untraceable, the convenience of a bank card and online banking is hard to overstate. If you plan on shopping online then you’ll need a bank account to draw from!
Cash can also be difficult to keep track of, so having it all consolidated online is a great way to keep tabs on your money. This way, not only will you have access to your funds whenever you have your bank card, but you can also manage your checking and savings through online banking apps on your phone.
Keep it Separate
Separating your savings from your checking is a great way to indicate to yourself when to stop spending. If you find it hard to save when all of your funds are in one bucket, this is a great way to differentiate what you’re saving from what you’re spending. There’s a lot to be said for the psychology of keeping your accounts separate to save money.
Interest Rates
Most savings accounts actually accrue interest. With most banks, all you need to do is stash some money in the account and leave it there to save. Then, you’ll watch as your savings gradually accrues interest and pays you back just for keeping it saved away. That’s the definition of a win-win scenario.
Find One Without Fees
Keep in mind that you can easily find both checking and savings accounts that don’t include any fees. If you’re banking somewhere that charges you fees, you’re likely getting ripped off! Between credit unions and local banks, you can usually find a place to store your money that won’t charge you for the luxury.
Direct Deposit
If you get paid by your employer in the form of a direct deposit, a savings account can be a great way to make sure you save what you need to. You can set up your direct deposit to go partially into one account and partially into another. For instance, if you’re planning on saving $100 per month, you can set up your direct deposit to do that for you!