Pros And Cons Of Using Savings Accounts

The most traditional way to save money is to put your money into savings accounts. But things have changed a lot over the years. Now the savings accounts that was used is not so valuable to us, because the interest that you get on your money saved is very low. There are both pros and cons of using this account, and it is important to understand why the advantages of a saving account has changed, and why most people nowadays do not prefer using this account.

Pros:

·         One can withdraw and deposit any sum of money as per requirement and can also do transactions as and when required.

·         There is no maximum period of holding the account. You can operate the account at your own free will. You can open or close the account any time as per your requirement.

·         It provides immediate funds as and when required through the use of ATM.

·         It provides a facility such as Electronic fund transfer (EFT) through which funds can be transferred to other people's accounts at the time of emergency.

·         Loans are also provided against the account.

Cons:

·         One of the disadvantages is the unlimited access to the account. When a person has easy access to the savings, there is a chance of over spending and a risk of losing everything

·         Accessing savings accounts is very risky, when a financial assistant is involved. They may tend to hijack your pin number when you are unaware and access your account on your .This can also be very dangerous.

·         Very little interest is generated from savings account. In other investments the interest rate is very high so you get back a lot of money on maturity of your account but this is not the case for this account.

A large part of our future depends on the amount of savings we do. The decisions that we make today affect the outcome our future, so it advisable to weigh the pros and cons before opening savings accounts.

Summary: Weigh the pros and cons carefully before opening savings accounts as proper savings decides the outcome of your future.