More and more people are opting to save for a secure future in today’s world. According to William Schantz, one of the best ways of doing that is through a savings account.
A savings account is one of the many types of bank accounts. It allows users to save money that can later be used in the future, especially if one has some extra cash in hand.
In recent times, the world’s economic conditions have seen a steady downfall. For people who plan their lives in terms of fulfilling long-term goals, this aspect is worrisome, especially when it comes to having enough money for the unpredictable conditions of the world.
To fulfill such goals, having an option to save money safely is a plus point, as per William Schantz. For that reason, individuals opt for a savings account. However, along with its advantages, there are still some downfalls associated with a savings account.
Pros of a Savings Account as per William Schantz
First comes the ease of accessibility.
Savings accounts are extremely easy to open. Along with that, there is no age limit when it comes to having one. Instead, many people help their children set up a savings account to inculcate the habit of keeping money safe for future use. Hence, the accessibility of such an account to a vast group of users is a major plus point.
Next, an interest rate is applied.
That is right! Putting money in a savings account does not mean you will get the same amount back years later. There is an interest policy that is used. This helps to increase the cash value that is present in the account.
Different banks have different interest rates when it comes to savings accounts. Banks can seek this information when one intends to open an account. Different packages exist and having full knowledge about all of them helps make a well-informed decision.
Another advantage of opening up a savings account is the presence of insurance, as William Schantz says.
Banks offer different insurance policies for users of savings accounts. The main reason is to cover for any potential loss that might take place. These losses are usually a result of unforeseen circumstances. Yet, even if they happen, the insurance policy helps cover it.
Information for such insurance plans can once again be obtained from respective banks, especially to make a well-informed decision based on the interest rates and the types of insurance offered.
Cons of a Savings Account as per William Schantz
Even though savings accounts offer significant benefits, there are a few downfalls. One should always consider such cons before finalizing the decision to open up a savings account.
A major drawback is a limit on making withdrawals. Savings accounts all over the world do not come with an ATM card, making it difficult to withdraw money from the account, yet, it is not completely impossible.
Withdrawals are permitted but in a limited number. Usually, one withdrawal can be made every 6 months. Hence, it becomes difficult to use such an account for everyday expenses such as paying bills.
Along with that, the interest rate on such accounts is low. In comparison to other bank accounts, the interest rate on a savings account is also relatively low, meaning not much is added to the money after a long time. Hence, reducing the benefits of saving up money in the first place.
Savings accounts are a great way of securing money for the future. William Schantz suggests making a well-informed decision before having one, especially if you get one for the first time. So make sure to weigh the pros and cons before you do!