Savings account is one of the important things that we should bear in mind, especially if we are earning daily, weekly or monthly income. There are vast number of people who are against having a savings account, and i try to understand the reason for that.
Is quite unfortunate that some people especially the uneducated, tends not to see the importance of having a savings account especially in this modern banking era.
I came up with this having having witnessed two persons arguing about having or not having a savings account, one is literate while the other is illiterate. The uneducated person seemed not to really understand the benefits or importance derived from having a savings account today.
Was thinking it was actually a means of keeping money in the bank, after all he has a good place where that he do save his money, what is the essence of going to the bank and keeping it there.
Is not only him, there are lot’s of people with this mentality even in this modern day world. This is what i want to clear up, to let you know that importance or benefits of having a savings account, not just really the bank helping you to secure your money or valuables.
So let me explain the importance of having a savings account today.
Why savings account is important
I will start with the major reason and move on to the others.
The major reason why we save money in the bank is for security, yes i said security in as much we now have fraudulent bankers and security issues like bank robbery, but your account is safe.
Even if robbers rob the bank that you are banking with of billion of cash, the bank is liable to pay you your money if you requested for it. Though in some cases, it may take a little longer especially if it was hit so hard.
Apart from money saving, below are other important reasons why it is good to have a savings account.
1. Helps in money transfer
You want to receive money from someone that isn’t within your location, how do you think the person will give you the money if you don’t have a bank account.
I know right now you may be thinking of the post office, but how much do you trust them. Even if it is properly secured, it can take up to seven day or three months (depending on the location) before you can receive the money.
However, if you have a bank account, you can send or receive money to your account within the space of 10 to 30 seconds. And the best part is that you can do it right inside your house, without stepping outside.
But in the case that you don’t have a bank account, hmmm bet you know that it is a long process. Have seen someone probably an old lady, whenever she wants to send or receive money to her account, she will request that the money will be paid into her domestic servant account, which the domestic servant will withdraw the money and give it to her.
Forget she’s an old lady, there are lot’s of youngies (pardon my language) that does same thing with the old lady, and it really annoys me a lot.
You can read more posts on money transfer;
- Paypal money transfer guide
- Best money transfer to Nigeria
- How to transfer money from one bank to another
2. Savings account offer easy payment
Another good importance of having a savings account is that it makes it easier for you to make payment, both offline and online. Why staying on a long queue in the name of making payments.
Many companies or firms offer online or offline means of receiving money from their customers, making it easy and better for themselves and also their customers. Stay in house and dial the code or go to online and make the payment.
2020 is on the corner and we will start cashless society. How do you think it will work for you if you don’t have a bank account, cause you’ll make payment through the use of atm/pos or money transfer.
I’m sure many companies will forced their customers to be making payments through their atm, and if you don’t have any, you can’t make your purchases. How will you get an atm, is by having a current or a savings account.
- Importance of atm to the bank customers
- How cardless atm works in 2020
- Advantages of automated teller machine (atm)
3. Investment savings
If you want to make lot’s of income, you need to invest. Without investment, you can’t make it in today’s world.
Investment comes in different forms, and i’m talking about investing in financial services like fixed deposit, bonds, shares or the treasury bills. You heard about shares, got so excited and wants to buy one, how do you do that, you will still need to have a savings or corporate account.
Earnings accrued will be directly to your account, and will not be given it to you on your hand. It doesn’t work that way at all, you must have a bank account before buying shares or any other financial services.
You can read to know more on some investment that is useful in this country;
4. Helps to reduce unnecessary spending
If you decide to keep your money with you, you may spend more than you should have in a day, week or month. Though you’re free to withdraw your money from your savings account, you may restrict yourself through the use of certificate of deposit.
You can also go for a fixed deposit or treasury bills and the money will be there without you having access to it till maturity date.
5. Helps your child’s financial future
Do you know that you can open a child’s account for your under age kids, fund the money for their future use.
It will be very helpful for their education and other needs, and this turn will save lot’s of financial stress from you.
6. Interest rates
Saving money in your house won’t give you any interest at all, even if it is over millions. Yes i know that banks offer little or no interest rates on savings account, but there are some bank that do give interest on savings account.
But to have better interest rate, you can fix the money instead of having it with you in your house.
These are the six reasons why it is important to have a savings account today, i’m open your questions thanks.