Why a Savings Account is the Cornerstone of Your Financial Health

Since the beginning of time, humans have learnt their way to build savings that safeguard themselves against unpredictability and also to gradually build assets they can use to improve their livelihoods. That applies to the modern world as well. If the past few years have taught us anything it is that no one can predict the future. To mention, the pandemic and inflation are some serious unforeseen circumstances that threw us off guard. But it is human nature to learn from every change and adapt to it. And we did overcome these, with the savings we accumulated over time.  

The whims of nature and changes  in the market affect each of us. Creating a savings account is one of the crucial things you can do to manage your finances against such market fluctuations. A savings account can serve as the foundation of your financial health, assisting you in daily financial transactions and navigating through difficult financial times.

 Let’s go through some reasons why we need to start saving. 

A SAFE for your money with extra protection

Knowing that your money is safe and secure can give you peace of mind. Your savings account balances are maintained unless they are withdrawn or paid out. Usually, Savings account come with low interest rate since there is flexibility to withdraw funds anytime you need.

Financial Emergencies

No matter how well you prepare for emergencies, you may come across certain dire circumstances. From car repairs to medical bills, emergencies can be stressful and overwhelming. You can avert such emergency financial stress with the aid of a savings account. To prepare for potential emergencies, try to save funds worth three to six months’ expenses in your savings account.

One Step Closer to your Dream

Having a separate savings account solely to help you reach your objectives is a practice that will help you in the longer run, whether you’re saving for a dream vacation, a down payment on a home, or the education of your children. You can gradually accumulate the money you need to realize your dreams by setting aside a small amount of money each month. 

Special Services and Benefits

Numerous banks offer savings accounts with value-added services and benefits. With subsidies on purchases made with merchants, cashback, and reward points on ATM or debit card transactions. Additionally, many banks offer some kind of fundamental accident or medical insurance, international travel insurance, and other insurance coverages in exchange for the opening of a bank account. You can obtain additional value by selecting an account that offers these advantages. Additionally, a savings account also provides access to a passbook, net banking facilities and a cheque-book. For instance, if you open your online savings account with Karnataka Bank you also get free net banking facilities. Online Saving Account Opening is easy with just few steps if you apply for it online. 

Evade Debt with Ease

The ability to avoid debt is one of the main benefits of having a savings account. You’re less likely to rely on credit cards or loans  if you have money set aside for financial emergencies and unforeseen expenses. 

Conclusion

Saving is a habit that takes time to develop, just like any other habit. You’ll be more likely to reach your goals and be better prepared for the future if you make saving a regular part of your financial routine. Making regular deposits into your savings account, no matter how small at first, can help you lay the groundwork for long-term financial success, prepare for unforeseen expenses and achieve your goals. So if you haven’t already, start saving money today – your future self will thank you!