Advantages of saving money in a bank

Posted by Felix Okoli on Friday April 19, 2013 at 17:26:44:

Are there any advantages of saving money in a bank? Is there a need for Nigerians to make of a savings account? More and more people are beginning to see that there are some benefits of having a savings account but there is also a significant number of people who don't believe than saving in a bank has any benefit to their business.

Banks have been in existence for quite a while and a part of human history. Ever since the introduction of money in notes and coins, there has been a need for a place to store them both for security as well as good store of value.

Safekeeping
One of the benefits of saving money in a bank account is that it offers one a safer place to store money such that it doesn't easily get lost or stolen. When you keep money in your home, there is the likelihood that it could easily be stolen by an intruder or even be misplaced. It may be safer then to save it in a secure safe at home like in a hi-tech safe but banks, due to their large size and efficiency, offer the best form of physical security for your money and even if it gets stolen, it is secured by the insurance companies. So, banks are probably the safest place to save money.

Basic interest on savings
Banks also offer an interest rate on your savings with them so as to help curb the loss of value that may arise when assets are stored as money. Keeping your money at home could lose your value when such funds depreciate in times of inflation. With an interest on your savings in a bank account, your money would grow at an appreciable rate to cushion the effects of inflation.

Curbs spending habits
Saving money at home and close to you may also make it easier for you to spend but by saving it in a bank account, it becomes harder. So, saving money in a bank account allows you to be more disciplined and moderate when using your funds. You don't get to spend money easily that is in a savings account unlike if it was held as cash at home. Saving money at the bank curbs your spending habits and allows your funds to grow over time.

Higher interest rates
Another advantage of saving money in a bank account is that it offers you the opportunity to invest in accounts that pay high interest rates on deposits.

Let's say you started saving some money in your account in the region of 10,000 to 50,000, by the time the funds grow to say N200,000, it would be able to attract higher interest rates on savings. Some banks pay higher interest rates of as high as 10% per annum if your savings balance reach to a minimum balance.

Growing money
Saving money allows you to grow money for future investments or opportunities. Yes, it is true! If you are used to saving money at the bank, you would soon notice that it is quite easy to grow your money while saving it there than at home. There is a sort of mental incentive one gets when his bank account gets credited each time he deposits money. It makes you feel a kind of satisfaction that you are growing financially which in in fact what is happening.

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Re: Advantages of saving money in a bank Reply by Bananaman on Thursday October 17, 2013 at 14:27:30:

This is awesome! Thank you.




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Re: Advantages of saving money in a bank Reply by John kanas on Wednesday November 6, 2013 at 24:33:33:

Better savings,better future.




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Re: Advantages of saving money in a bank Reply by MAMAH OLIVER on Thursday June 5, 2014 at 14:56:32:

EXCELLENCE THANKS




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Re: Advantages of saving money in a bank Reply by Godwin on Thursday June 12, 2014 at 22:41:35:

WHAT IS MINIMUM BALANCE BEFORE ONE CAN GET INTEREST ON SAVINGS ACCOUNT, COS HAVE NOT EVER SEE MY SAVINGS ACCOUNT WITH INTEREST. THANKS




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Re: Advantages of saving money in a bank Reply by Felix Okoli on Thursday June 12, 2014 at 22:41:35:

The minimum interest for most banks now is about 3%.


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Re: Advantages of saving money in a bank Reply by Victor Bejide on Thursday June 19, 2014 at 21:56:37:

Thanks this information is very helpful. Peace God Bless.




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