Saving sometimes may have you feeling as if that money that was put away will be needed now. However, there are perks in saving! Liquidity, Convenience, Safety of money, short term savings and having emergency funds are just to name a few. 

Liquidity

Savings accounts are one of the most liquid investments. Your money is readily available. If this is important to you, saving in a bank would be a better option than investing in the stock market.

Convenience

Storing your money in a bank is by far the easiest way to save. For one thing, it is user-friendly. You can set up automatic transfers from your checking to a savings account, it is effortless to instantly withdraw money from your savings, and it’s easy to track where your money is at. It cannot get any simpler… there is no headache involved.

Safety of money

A bank keeps your money untouched. In the stock market, there is always the risk of stocks doing poorly and you losing money rather than gaining. Your profits may be low while saving through a bank, but you are not taking the risks of losing large sums of money through your savings account.

Short Term Savings

Saving up for trips, down payments or expensive items that you foresee buying in the immediate future can easily be done. You can save up quickly in a savings account through your bank, and then immediately withdraw the cash when the time comes. For short term savings, this is the way to go.

Emergency funds/cushion

If you save your money in a bank, you will have immediate access if there is ever an emergency. If your car breaks down, don’t sweat it. Just pull some of your savings right away. This also is handy if you need a cushion within your budget during a tough month. There is less to stress over when you know that you have a back-up plan that’s easy to access.

Freefinancialadvisor.com BY EMILIE BURKE