Most people would know what savings are. Savings are income that is not spent. It is then kept as a backup financial resources. The factors that influence people to save money include (a) the income level, (b) the interest rate set by a bank and (c) how trustworthy is the bank.
Saving is an easy word to say. But in reality, it is much harder to get it done. In order to start savings, you’d needs a strong motivation. The level of financial ability of each person is also different, thus affecting their ability to save. This is especially true in countries considered as developing countries. There are still many people whose incomes is barely enough to meet basic living needs, let alone setting aside some money for savings.
However, that doesn’t mean savings is not important. You save or keep the money for use later on. It can then be used according to your needs or for unexpected emergencies. The financial institutions such as banks is the most appropriate way for saving most of the time. It is also the most popular choice for people nowadays.
In earlier times, before the existence of bank, savings is carried out at home. The money, for example, is stored in a container like a piggy bank.
With technological advances and the developed mindset, money is no longer saved at home. It is then kept in the bank because it is more secure and profitable. The bank also provide the ease of doing a number of financial transactions. Today, banking business has significantly developed. We have so many existing banking services for safe-keeping money, such as savings, fixed deposits and current accounts. These three services as basic banking products are well known in the community.
Bank Savings is a form of service that the public most widely use compared with the fixed deposits and current accounts. This is because of the requirements for opening savings relatively easily. You can open savings account by just filling out the application form and attach identification such as ID cards, driver’s license, passport or other identity cards. Also, initial funds are deposited in savings banks is relatively small.
Facilities offered by banks for savings account holders can be quite attractive, like the ease of transactions through ATMs (automatic teller machines), insurance protection and giveaway programs. But the savings interest rate has a relatively small compared to deposit rates and current accounts.
Remember, the most important point to more savings is the motivation. Think of big ticket items that isn’t possibly bought by your monthly income, such as cars, house, luxury holidays, and you’ll find there’s suddenly a purpose to your sacrifice. Moreover, savings can come handy when unexpected situations arises such as emergency medical expenses that needs money. In a way, saving is a form of activity that can teach discipline.