Why Is The Good Old Savings Account Still Very Popular?
Investors of today are very smart when it comes to picking their investment choices. They have the internet to give them all the information they need about the many investment plans. There are bot advisors that can help them understand their credit performance and to pick the most suitable places to park their investment funds. If they choose to trade there are trading bots to assist them. If they choose to go for managed funds there are some very flexible mutual funds. With so many advancements in the fintech domain, most of the investors still own one or more savings accounts along with their checking accounts. Why are savings account so popular till date?
There is the safety that a savings account offers
Not all investments come with the kind of security guarantee that a savings account offers. Market risks, external factors, inflation, recession, none of the economic events would cause the money in your savings account to dwindle. The zero risk involved in this option is what makes it a safe haven for placing the extra funds.
Liquidity like no other
Checking accounts have limits on the withdrawal and these are sometimes very tight. Savings accounts have higher withdrawal limits. And with a savings account, one can access the funds either using the debit card or through internet banking. Online transfers and payments can be done round the clock. The convenience in accessing the funds placed in a savings account makes them perfect even for the times of emergencies.
There is an interest being added
Based on the average balance you maintain in your account you would be given an interest. The rate of interest is the least in comparison with most other types of investments. This is one reason why people choose other investments when the capital in the savings account increases. But still, for the level of convenience you get and the ease of using a savings account, getting an interest is a good thing. One can always compare the interest rates offered by various banks and pick the best one.
Can be linked easily with other accounts
When you link your savings account to your checking account you can carry out a lot of fund transfer automation. Besides this, even some of the most common monthly payments can easily be automated in a savings account. Most banks also provide mobiles apps for convenient maintenance of the account and for monitoring the account activity.