Top Reasons for Having a Savings Account

Ellina James By Ellina James, 7th Nov 2015 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Business>Accounting & Finance

It is very important to manage your personal finances by having a savings account. In order to open a savings account, you must associate with a reputed bank that offers attractive interest rates, no operating cost, minimum account balance etc.

Top Reasons for Having a Savings Account

Having a savings account is great way to manage your personal finances. It is important to open a savings account with a reputed bank in Kenya. There are many features that must be considered before opening a savings account. They include little or no operating costs, minimum account balance, interest rates etc.

The most important feature that is generally considered while opening a bank account is the interest rate. A good reputed bank will offer attractive interest rates and charge zero operating costs. You will get interest on your savings every six months and there will be no penalties on withdrawals.

It is important to have a savings account even though you may have not yet started working. It will help you become financially independent from a very young age. Further, there are many more reasons to open a deposit or a savings account. Let us look at a few of them.

1. To build wealth – In order to build substantial amount of wealth it is important to start saving as early as you can. Every shilling that you save counts. The interest that you earn on your savings also helps you increase your wealth. When you have good amount of wealth saved you can invest further in real estate, stock market etc. This will help you grow further.

2. Safe keeping and easy access – It is not very wise to keep huge amounts of money at home as it may be robbed. Hence it is best to deposit in a bank where the money would be safe and you can access it any time. It is very easy to withdraw money from a deposit account any time you require with absolutely no charges.

3. Sudden costs – Our life is full of uncertainties. There can be unexpected expenses in terms of illness or accidents. In such cases, savings account deposits can help you. The money is easily available at any hour.

4. Fulfilling dreams – We all have desires to go a vacation to an exotic destination or purchase a luxury items. In order to fulfill these dreams, it is important to have a savings account and make deposits in the savings account each month until you have achieved your desired amount.

5. Loans – We all need loans at some point of time. Hence, it is easy to start building relationship with a bank by opening a savings account. It is usually seen that banks offer loans to old customers at low interest rates.

Apart from the above mentioned reasons, depositing money on regular basis in the savings account helps to curb the unnecessary expenditure. Also, saving money regularly helps you develop good financial habits.


Saving Money, Saving Money Tips, Savings Account

Meet the author

author avatar Ellina James
After completing MA in Marketing from London School of Economics in late 70's, Ellina James chose to work for Marketing Research firms in Europe only.

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author avatar Sivaramakrishnan A
8th Nov 2015 (#)

We should have at least one Savings account with check book facility. And the young should be advised to spend less than they earn! siva

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