Are savings accounts worth it? |
Are Savings Accounts Worth It? According to a recent study, around 78% of Americans have a savings account. It was also found that 71% prefer to keep their savings in physical/brick-and-mortar banks. This just shows that most people still use traditional/regular savings accounts to this day. It is common knowledge that regular savings accounts offer modest interest rates. With high-yield investments widely available, are savings accounts worth it? Here are some reasons to keep some of your hard-earned money in this time-tested vessel. Your Money Is Safe and Insured Keeping large amounts of cash at home puts it at risk of loss, theft, or fire. In case any of these mishaps happen, your hard-earned money can just disappear. If you have home insurance, it can only cover a limited amount of cash, which is typically around $200 to $300. When your money is in a savings account, the burden of physically protecting it is lifted off your shoulders. In the event of bank failure, the Federal Deposit Insurance Corporation (FDIC) can reimburse deposits of up to $250,000 per depositor. You Can Easily Access Your Money When Necessary Unlike a checking account that is intended for daily spending, a savings account is meant for saving money, as its name suggests. While it is a place to stow your cash in, you can easily withdraw money (via ATM or the bank counter) in case of emergency. Withdrawing money from your savings account is relatively easy. So, to still encourage you to save and control your spending, some banks limit withdrawals to six per month. Any debit transactions past that limit will be charged a small fee. Your Money Can Earn With Virtually No Risk Involved A savings account is one of the most secure ways to invest your money. While you earn lower returns compared to other investments such as stocks and bonds, savings accounts are virtually safe from any potential loss. You Can Automate Saving If you are serious about your financial goals, you can set a portion of your paycheck to go to your savings account automatically. This system lets you steadily contribute to your savings without the need to deposit cash manually at the ATM or bank. It is ideal for those who are sticklers for budgeting. Are savings accounts worth it? Yes, indeed! If you are in Oklahoma or Texas and you need to open a personal savings account, open an account online today or get in touch with any of our branches. Liberty National Bank offers a variety of savings accounts to help you save and grow your money. |