When it comes down to finances, we all want our money to be kept safe. It would also be great if our money could grow while we focus on day-to-today living. These are just two of the benefits that we will cover in greater detail below.
5 Key Benefits of Using a Savings Account for Your Salary
Savings accounts are offered by every financial banking institution across South Africa. Each savings account has unique benefits, however, the five below mentioned benefits ring true across the board.
Easy to Open
One of the easiest accounts to open at a banking institution is a savings account. All you need to take with you is:
● Your identity document
● Proof of address
● First deposit fee (this amount varies from bank to bank. Some banks do not request this amount up front)
In this digital age you are now able to open a savings account with some banks without even visiting a branch. Everything is digitised and created for you.
Accessible
A savings account is tailored around transactions. You can withdraw, deposit and save your money in your account as you wish. Many banks do not charge for certain transactions such as free deposits up to a certain amount. Other banks have free ATM withdrawals or free swiping facilities attached to your account.
Interest-Based Earning
A savings account incurs interest on the money that you leave in the account for a certain period. When the interest rate in the country goes up, so does the interest that you earn on your money in your savings accounts. It is important that you choose an account where your interest rate earned will increase over time as well. Some banks offer as much as a 10% annual return on savings.
Your Money is Safe
Gone are the days where carrying cash is the norm. The greatest money move that you can do for yourself is have your money in a savings account with a trusted bank. Using your card to perform day-to-day transactions is far safer and wiser.
A Goal-Orientated Money Move
If you know what your interest rate is, you can work towards achieving your financial goals. You can also speak to a consultant at your chosen bank to see how much money you should keep in your account to accrue a certain amount of interest. Set those financial goals and use the power of the savings account to achieve financial freedom.
Bonus Benefit for Struggling South Africans
The bonus tip of a savings account is that you can apply for debt review with Debt Rescue with a savings account. If your debt repayments are causing you financial stress and you are worried about the rising cost of living, chat with us. Let our financial experts help you restructure your budget to ensure that you cover your monthly living expenses as well as paying off your debt.
A savings account puts the financial power back into your pocket. If you do not have one, research the various banks in South Africa. Look at their offerings. Write these down in columns or set it up in a spreadsheet and compare the specific offerings to find the best savings account for your needs.