Savings

Want to Live a Secure Life – Saving in Personal Finance is the Answer

Savings are a necessity for today’s world.

We are living in an ever-changing world where one cannot rely upon anything. You cannot rely on your job or any other thing, and the most unreliable thing is your own life. You cannot risk the lives of your loved ones by not ensuring a safe future for them even when you are no more a part of their life. Savings are a blessing at the times of need. You need to have some savings always in your hand. You never know how your life surprises you and at what time you might need money for any unexpected event. Savings in hand give one a feeling of independence.

You know that no matter what comes across your life you will be able to deal with the problem single handily. These days, money is all you need to overcome your problems. Saving is not done only to be used at the time of emergencies but sometimes savings are a necessity for you to enjoy some important aspects of life like people have been seen saving for a family holiday trip. Asking others for money is not liked by anyone; it is a matter of one’s self respect. Saving for a specific motive is a tough job. It is time-consuming and, you have to stay focused. Prioritize things in your mind and tell yourself that saving is your only motive of life. Saving is an important decision, and every member of the family is a part of this process because eventually each one of you will have to ignore their likes to save money.

Deposit account – Banks at your Service:

These days almost every person holds an account in the bank. Bank is a safe place for your money, and also it is out of your reach when you are in a mood of being a spendthrift. A deposit account helps the account holder to save and withdraw money at any time when he feels like. Money in the pocket is different from money in the bank. You can use your deposit account to save money gradually. No one expects you to hoard a huge pile of money in a month or two. The process is gradual, and you might feel that this saving thing has made your life miserable, but it will for sure pay you in the long run. Deposit accounts are preferred by the people who only require security for their money and have no interest in getting profits on their savings. Many people now have a low cost everyday account and a high interest savings account, like this HSBC example.

Checking Accounts are a Great help:

Checking accounts also earn you profits on your savings. The bank utilizes the money in your account for financing new projects. In return, he profits are earned by you and the bank. In case of checking accounts, you enjoy profits from your savings, and you have the assurance of the bank that you can take out money from your bank account at any time you want to. You will not have to pay any kind of penalty for withdrawing your money. Checking accounts are beneficial since you can withdraw your money at any time you want to, but the fact is that they do not offer you large interest on your saved money. You do earn a profit on your saved money, but that is relatively less but something is better than nothing. If you believe that you will need your money in the near future, and you cannot keep it in your house because you might end up using it then keeping it in a checking account will be a wise thing to be done. The interest coming on it might not be required by you but every penny counts at the time of need.

Online saving accounts – a blessing:

Online saving accounts are a blessing for every person in this age. Everyone is extremely busy these days, and every single person is in a hurry. We do not have time even for ourselves and going to bank just for depositing and withdrawing money seems like a tough job. Online saving accounts have made this job hell easy as you can sit in your office and keep a check on your savings account. A saving account is one in which the account holder deposits a fixed amount of money in his account. The bank then utilizes this money doing some investments and the profit that is earned because of this investment is shared between the bank and the account holder. Such accounts are used by people who wish to save large amounts of money; people who save smaller sum of money do not use such accounts but can still save their money using some other basic saving accounts. Online accounts also save you from the hassle of going to the bank and standing in those long lines.

Another option is time deposit:

Time deposit is another option created by banks for people to save money. Banks have created a lot of unique and different ways for you to save money. They give you incentives to hold an account in their bank; they are earning money from all this but they to give you a lot of benefits at the end of the day. Time deposit is also known as a certificate of deposit. In such an account, you save a certain amount of money in the bank for a fixed duration. You cannot withdraw money from this particular account until the fixed duration is over. The bank continues to give you interest on that saved money until the maturity date arrives. In certain emergencies when one needs to withdraw that money before time then you have to inform your bank before time. You will have to pay some penalty to the bank before withdrawing money. It is a very good way of saving your money as you will be getting more money after the duration of maturity is over. So in this saving you are investing money and getting profit, which is a good thing to be done with your money instead of just dumping it in a bank account to rot.

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