What are the Benefits, Advantages and Disadvantages of Having a Savings Account?


The savings account is a type of deposit which allows you to have the money immediately available, The savings account has the characteristic that it has a kind of folder in which all the operations that are carried out are stored.

A savings savings account must be delivered by a bank, said account must have a contract between the financial institution and the person who will be the account holder.

The savings account has the quality that can generate interest when making deposits in our account. This type of account is mostly used by the young population, since young people have the need to have savings. Basically this account allows us to have all our savings in a bank that will be our bank.

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savings piggy

Benefits of a savings account

If the savings account is an account that allows us to make deposits that later will become savingsIt is an important benefit for people, however its most notable benefits are:

  • We earn interest about our savings.
  • It allows control your money at all times, the savings account separates a specific money from others, thus managing to save by means of sums of money through certain deposits. This account is very important when you are saving to buy some type of product.
  • Allows quick and easy access to our money, all banks allow you to enter these savings at any time of the day, likewise some people like to link the account to an internet account, because they have no complications, this is more than anything seen in the BBVA bank.
  • Keep your money safe.

Characteristics of a savings account

The characteristics are what determine the difference between a savings account and a checking account, because the checking account seeks liquidity while the savings account, as its name says, seeks savings. Its main characteristics are:

  • Banking operations can be done at any time.
  • It is characterized as a long-term financial investment.
  • We can know at all times the account statement, how much money we withdraw and especially when we have left.
  • A kind of sum that we will win depending on the amount that is saved.
  • Allows monthly compounding
  • The amount saved will be tax-free, that is, it will always be a net amount.

bank savings

Advantages and disadvantages of a savings account

Savings accounts may lack quite a few advantages, but we also have to talk about their disadvantages. The main ones are:

Advantage

  • Savings accounts they are free at all times of commissions On the part of the bank, no commission will even be charged at the time of carrying out some type of maintenance.
  • Allow customers to get their money be accessible At all times, even if you are sure, this can be done through a savings account with a passbook.
  • To open a savings account, you do not need a very high amount, we can open it with a fairly low amount.
  • At all times our savings accounts can earn interest, that is, they will be subject to these interests.
  • Get into the habit of saving money in a short time and being thrifty.

Disadvantages

  • If at any time we use the account for payments outside the deadlines that were determined, the issuing bank will charge commissions.
  • The interest earned on our savings accounts is very small.
  • The credit cards cannot be linked to a savings account, as they are the complete opposite of a savings account.
  • Limit the movement of moneyThis is so because some accounts have a money limit or a use limit.
  • The savings account can be converted to a checking account if many movements are made in the same month.

Importance of a savings account

The importance of the savings account is present from the moment that it allows us to control our money, as well as it allows us to save quite large sums of money to buy a certain product. Sooner or later a savings account turns into a vital tool for people’s lives.

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