In our opinion, the purpose of a savings account will depend upon its uses. Example, if the account holder just want to save, then the primary purpose of a savings account will be “savings”.
- Savings
- Emergency Funds
- Payroll / Salary
- Insurance Auto Debit
Purpose of a Savings Account
Other people save money as a future use, education funds, emergency funds and some are investments. But, when you just save your money in the bank, you will never earn high interest compare to other forms of investments such as stocks, real estate, business and mutual funds.
Awhile ago we answered some questions of our readers asking what is the highest interest savings account. There are many reasons why rich people are saving money. Today we will, talk about the reasons (at least you know why you are saving money in the first place) why do you save money.
Savings – people love to save, and they are very proud to have a “bank savings account especially passbook with ATM card”.
Emergency Funds – other people use to save money to build their emergency funds. This type of savings can get easily without any hassle or hesitation. Since this is for emergency funds, they don’t touch the funds unless it is an emergency cases.
Payroll – companies required their employees to open a bank account and use this savings account in their payroll wherein, the company will send or deposit money to the employees savings account as their salary.
Insurance Auto Debit – i use savings account to save some money to pay my premium. When renewing my life insurance policy, the company allows me to auto-debit my insurance from my savings account.
Statement of Account: Some people use savings account as their “proof”, they just request SOA or statement of account and use the Statement of Account as their proof of billing, proof assets, proof of “cash deposit”. What about you? In your own opinion, what is the purpose of a savings account? Please share your opinion using the comment box below. Thank you!
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