In the times today when everything is inflated in a skyrocketed manner you need to keep an eye on your savings at all times as life is totally unpredictable and you never know when and where you may need a huge amount of money.

However, at one point when collecting some money for saving everything is important keeping it safe at one particular place is also significant. If you will keep your savings at home you will end up using them every month for unnecessary expenses, however if you get yourself a savings account you may actually do something for yourself which will benefit you later in life. Here, we have given a total insight to the pros and cons of the savings accounts so that you may decide whether or not this kind of account is meant for you or not by having a look at these facts related to savings account.

Pros of Savings Account (i)

Earning of Interest

The very first thing which attracts people a lot when it comes to savings account is the interest. When you keep your savings in a saving account you may enjoy high yield interest rate over your savings and it will with the passage of time help you have an increased sum which won’t happen if you keep your savings at home. Savings account interest rates are fairly impressive as compared to other kinds of accounts and hence this kind of account proves to be a better option for a lot of people.

Easy and Quick to Open

When it comes to opening up a savings account the hassle of formalities is usually very less. It is a very easy and quick procedure and by way of filling a simple form and submitting a few documents you may have your savings account opened up for you in no time which is definitely a wonderful thing. So, even if anyone is planning to get a savings account for their old aged parents they won’t be troubled much in the name of formalities.

Hassle Free Returns

If you invest your savings in any kind of investments and certificates you will not be able to access your money immediately. Getting your cash back from such kinds of investments is usually a very lengthy and time taking process. Whereas when it comes to savings account you may make the most of it with zero trouble, this proves to be a very helpful thing in the time of emergency when you need money immediately and you are in an emergency situation.

Startup May Require a Less Payment

When we talk about making investments you need a huge amount of your savings which shall be invested in a particular project in order to be a part to earn profits. However, in case of savings account you are at an ease that you will require a very low amount of money in order to get your savings account open up and this makes everything easier for the people who wish to start with a limited amount of money and have the potential to go ahead in future by accumulating huge sums.

No Bounding Limits

There is no limit as to lock you for a certain period of time, if you invest today you may take back your money in a week as well if you are not happy with the investment or you need money. It is not the case with the other kinds of investments as they block you for a particular time period and you can’t withdraw your sum then. So, all in all savings accounts provides you peace of mind and ease with no limits on your withdrawals.

Cons of Savings Accounts (ii)

Maintaining Certain Balance

One of the most unwanted fact associated with the savings account is that you need to maintain a minimum balance stated by the bank at all times. In case if your balance falls below the stated amount your bank may impose fines on you which cause a trouble to you and also such deductions do away with your interest earning as well.

Fluctuation of Rates

Interest rates fluctuate a lot and this fluctuation is also reflected in your savings, as you are good to go in the days when rates are high, the low rates may take away a lot of share from you. Hence, this fact always stays intact with the savings account and may be a very problem creating thing if the rate of interest is low for a longer period of time.

Monthly Fee Payments

Though may banks claim to provide no monthly fees savings account to their clients but somehow they end up deducting the monthly fee in the form of different taxes and this may be a burden because when the rate of interest is low there is no compensation and such fee may end up eating off your investments.

Negative Impact of Easy Access

Since these accounts are backed with easy access and you have a choice to immediately withdraw money using an ATM at the same time this thing has a negative impact. This way you will always have in your mind an option of having money withdrawn from the savings account and this deduction will always lower down your savings rather than increasing it. So, if not managed sensibly this account may prove to be a loss on your part too.

We all know this thing very well that there are pros and cons of everything out there and same applies to these savings accounts so there is a need of sensible management and proactive approach so that you may make the most of the benefits out of it. Try not to withdraw funds every now and then and look for the saving account options with the banks which offer crystal clear policies rather than having hidden charges and deductions which prove to be a burden to the investor in the longer run, choose wisely from different savings account options.