It has long been known that a bank deposit account is one of the safest ways to invest your earned money with sweat and blood. However, banks may limit the amount of money you can withdraw from your savings account each month. They may also charge an additional commission if you do not maintain a certain average monthly account balance.
Nevertheless, a savings account is the most conservative investment option, which may not bring you a lot of income, but at least will allow you to save your accumulated funds from inflation.
Since a savings account brings interest, it is financially more profitable for you to put money on it, and not just keep it on the card (not counting special cards with interest and cashback). In addition, a savings account is one of the most liquid investments, making it easy to access your money at any time. Read about these and other advantages of keeping money on the deposit below.
7. Earn interest on your savings
The first and foremost benefit of having a savings account is that it earns interest on the funds you deposit. A savings bank account accumulates and pays you interest, which is calculated by multiplying the interest rate by the amount of money deposited and saved in your account. The interest rate also changes from time to time.
6. It solves your goal
A savings account keeps your deposits separate from your other money. Regular deposits will help you save money. It's the perfect way to set aside money for specific goals like new furniture, a wedding, or a vacation.
5. You can easily access your money
You can easily access your money deposited into a savings account. You can simply withdraw your funds from the bank to cover unexpected expenses. Most banks and institutions provide their account holders with online access to their funds 24 hours a day. Some institutions may also allow you to link your savings account to other accounts for quick and easy transfer of funds. Of course, in this case, you will lose part of the accrued interest. But no one will take your money away from you. The ability to instantly access your funds when needed is one of the biggest benefits of a savings account over investing in stocks, real estate, and the like.
4. Keeps your money safe
A savings account with any government-insured bank or institution helps keep your money safe. The Russian state insures deposits for 1.4 million rubles. If you have more money, then just open several deposits. This assures all account holders that their money is in safe hands.
3. No risk
As mentioned above, a savings account is probably one of the safest ways to make an investment without any risk. A savings account also allows you to transfer your money to another investment when the opportunity presents itself. For example, if a home in your area becomes available and you want to buy it as a rental property, you can use your savings account funds.
2. Liquidity
One of the main advantages of a savings account is its liquidity. Withdrawing money from your savings account is as easy as possible. A savings account provides easy access to your deposited funds when needed. You can withdraw money as many times as you like using ATM, cashier, online banking, etc.
1. Convenience
A bank account is very easy to open. For example, by creating deposits VTB. This way of investing is much more convenient than any other. Bank deposits are especially useful for a young person who is learning to save for the first time.
