When you look at how most people view investing, they are always referring to factors such as real estate, foreign currency, precious metals, or stocks. And you will also find that these investment factors can form some long-term returns on your overall income. When talking about incomes and sources of incomes, subjects like installment loans online cannot be ignored. Unlike the regular loans that many people apply for at banks or creditors, these types of loans offer maximum flexibility in terms of payments and application.
It is due to their volatile nature that they carry a substantial amount of risk with them. For one, you need to input a significant sum into the investment, even if it is a small amount. But you find that getting your money out of these investments can be a little bit tricky. These, and more other factors can discourage potential investors from getting into this industry.
Which is why we have humble savings accounts. They may not be as glamorous or adrenaline propelling as the investment accounts. But it is one sure way to ensure that you have a significant sum of money in your account for future use and/or emergency. This article wants to discuss with you some of the unique benefits of savings accounts.
- It’s low risk
When you start a savings account, you will, by no means, lose any cash as opposed to investments. In investments, you will definitely lose a significant sum of money. In as much as you may end up making a good amount of cash, you will realize that you had lost a substantial amount as well. A savings account can be a great way to save some, lose money in your possession instead of opting to invest it.
- It’s FDIC-insured
This simply means that the Federal Deposit Insurance Corporation automatically ensures your cash the moment it gets to $250,000 plus against any failure of your bank. This type of insurance will ensure the safety of your money even if your bank runs out of business. You will either receive your total balance directly or even have the total amount be sent to another account. So, all in all, you will be set and your money will be safe and secure.
- The saved money is always available
With savings and savings accounts, you always have the pleasure of enjoying access to your money any time of the day, be it day or night. And you can also access the savings account from any ATM. All you need to do is have a good debit card, press on a few buttons and you have your money at hand. Investment accounts can withhold your money for several days before they finally hand it over to you which can be quite inconvenient sometimes.
- It earns a return, however small
Savings accounts don’t earn you such high returns. They can be as much as 2%. But that’s it. But still, that’s a lot better than risking everything or part of what you have to a much larger return. For all you know, you can also end up losing the money altogether.
- It doesn’t need a big initial investment
When you look at many investments like real estate properties or mutual funds, you find that they all need you to cough up huge sums of money as startups. The same isn’t the case for savings accounts where you can start from as low as you possibly can. Most savings accounts don’t have a minimum balance. You can start it with whatever you currently have.