WHY SAVINGS ACCOUNTS SUCCEED – 6 UNTOLD BENEFITS YOU MUST KNOW NOW

Tonight's post is a guest post from the lovely blogger and author Stacey B Miller. Sharing her insight and wisdom with us today on savings accounts.

Savings accounts are not glamorous like investment accounts. They don’t give you that adrenaline rush like stock investments, but they have lots of benefits. Here are a few of them.

1. Your money is in a safe and secure placeYour money is in a safe place because savings accounts are FDIC insured. If the bank runs out of business or fails due to some reasons, this insurance will ensure your money remains safe and secured. You will get back the entire amount instantly. Otherwise, you’ll get the full amount in another savings account.

2. You can access savings accounts 24*7Are you planning to settle your credit card debts? Well, in that case, you have to save at least 50% of the total outstanding balance. What is the best place to keep your savings? Obviously, in an FDIC insured savings account. You can use the money to pay off your debts.You can access your money throughout the day. You can withdraw money from your savings account with an ATM. Just use your debit card, press on a few buttons, and that’s it. You have the requisite cash in your hand.Do you want to transfer the amount to a debt settlement company? You can do it within a few seconds with a mobile app. Most banks have a mobile app nowadays. So that won’t be a problem. You can view your savings account statements through the mobile app. You can transfer funds from the savings account to your checking account too.Investment accounts can withhold your money for many days. Recently, my dad needed $10,000 dollars due to some urgent medical issues. It took him around 4 days to get the money from his investment accounts. Thank God! I had money in my savings account and could help him in the initial days.

3. You can earn a return on your savingsYou can get a 2% return on the amount you have kept in the savings account. It’s not a huge amount. I agree. But this is much better than risking everything you have earned in the last few years. You’re not losing any money. Sometimes, too much greed is not good.

4. You don’t need to invest a huge amountYou don’t need a huge amount to open a savings account. Unlike stocks, mutual funds, and real estate, you can start from as low as you can. Maximum savings accounts don’t have a minimum balance. So you can open a savings account with whatever you have.

5. You won’t lose money because it has a low-risk factorYou won’t lose money in a savings account. You can incur a loss in investment accounts. But this doesn’t happen in the case of savings accounts. Rather, you may end up having a huge amount of money in your savings accounts.In investments, you can earn a lot and you can lose a lot. If you keep your hard earned dollars in savings accounts instead of investing them, you can save money.

6. You can open a savings account easilyVisit the nearest bank where you have a checking account. You can open a savings account quite easily. All you need to do is just fill out a few forms and submit some documents. Nothing else. In the case of investment accounts, there are lots of formalities you have to complete.

A word of wisdom

There is no monthly fee for operating a savings account. Plus you can bank online or over the phone. There is no need to visit the bank personally. I agree that the savings account interest varies between 0.15% to 2%. But this is not too bad considering the risk factor is very low. The long-term financial benefit of a savings account is immense. It’s much higher than what you think.Are savings accounts worth it? I would say ‘yes’. The purpose of a savings account doesn’t lie in increasing your profit margin. The purpose of the account is to help you save for the emergencies, liquidity, and instant access. The whole point of keeping funds in an emergency fund is to help you access the money as quickly as possible.

Conclusion

Savings accounts don’t get much limelight. They are not promoted or marketed like insurance policies or stock investments. But they can ensure you have enough money in your accounts for emergencies.Investment accounts are risky due to their volatile nature. If you want to invest in a stock, you have to buy scripts first. If it’s a blue chip company, then you may have to spend a significant amount on only one script. If it performs well, you can expect a big profit. If it doesn’t perform well due to some reasons, you can incur a huge loss. Sometimes, it becomes extremely hard to recover your principal amount. But savings accounts are not like that. They give you assured returns. Plus, you don’t need a huge initial investment to open a savings account.

Bio-

Stacy B Miller is a writer, blogger and a content marketing enthusiast. She is also an established contributor at Myfico forums. You can learn more about her thoughts and opinions about money and financial issues from her blog kissyourmoney.com

Hey guys it's Andrea just wanted to add another valuable tip that I received from my friend over at https://xrayvsn.com/Word of warning, you are only allowed 6 free withdrawals in a given month, anything over that they can add a fee (sometimes as high as $20-25 PER each transaction over) After I received this great tip I located this post that also backs up that information here