Multiple benefits of opening a bank savings account

1. Multiple benefits of opening a bank savings account

2. By opening a bank savings account you are virtually entrusting your hard earned money to an institution that guarantees the highest safety and security of your money. Such an account is the basic foundation for any Investment planning- • The money you deposit is federally insured. In the US this means your money is protected by the FDIC, even if the bank goes bust. Alternatively, the credit unions are covered by the NCUA. • Your money can be deposited and withdrawn from the account on demand anywhere, anytime as the branches of a bank are all integrated online by core banking software solutions

3. You can request the bank to collect paychecks, dividends and interest payments or amounts released by way of cheques by other individuals and companies, and these cheques can be collected and deposited in your account for a fee. You can make it your checking account and authorize the bank to collect, receive and credit your salary to this account, and enable loan repayments and deductions to be made through it, as your personal debt management strategy. You can use the account to conveniently make all sorts of cheques payments from university fees to airline tickets to utilities and shopping bills. You can also use it to send cash remittances to your family members or friends in emergencies. Perhaps the biggest convenience of opening a savings account is getting an ATM and debit Card that gives you anytime-anywhere access to your savings. You can also deposit cash into your account through these machines, and avoid direct interaction with the bank.

4. Online banking is another outstanding benefit of having an account.This advanced personal financial planning software enables you get instant access to your personal account and view account particulars, and you can use it to move your funds. You can monitor whether money has been credited, and which amount has been withdrawn, and keep track of expenses. Certain facilities are fee based, like it enables you to safely pay your utility bills and loan installments for a fee. Funds can also be transferred from your account to other banks locally or internationally for a fee. One superb benefit of having a savings account is getting priority in approving personal loans and business loans. A well maintained savings account is essential for building your credit score and credit rating for applying loans. Mobile banking is yet another benefit that provides many financial tools that help you control and monitor your savings while on the move. This is particularly beneficial to business men and entrepreneurs for investing their funds in shares,mutual funds, properties and gold that yield the highest returns.

5. Perhaps the only drawback of a savings account is that the banks pay out very nominal interest rates for your savings, and the bigger rates are reserved for larger and long term deposits, but as we have seen, the banks more than compensate this shortcoming by providing a bouquet of benefits that favorably impact our personal finance management, and save us from personal financial crisis. It may be prudent to opt for banks that do not insist on minimum balance requirements with fees, so that you can maximize your savings potential. Check cash loans.