If you have a little money saved in your usual account and you don't know what to do with it, a very recurring idea is to open a savings...
If you have a little money saved in your usual account and you don't know what to do with it, a very recurring idea is to open a savings account and deposit it there, safe from our "impulse purchases" among other possible superfluous expenses.
Savings accounts are very simple products that will allow you to obtain some credits for your money without losing the availability to use it without penalty when you need it. It is a savings option that can be a recurring source of financing in the future, as instant money is today, which also allows you to deal with those inopportune expenses that arrive when you have not yet been able to receive your usual income.
On the other hand, its detractors point out that it is an unprofitable banking product, which immobilizes your money more than it works. They are those who advocate investing in financial assets and instruments.
Below we summarize some details that you should know before signing up for a savings account and that will help you position yourself in this debate.
Advantages of opening a savings account
Zero fees: Savings accounts usually have no administration or maintenance fees, in addition to allowing free national transfers. If your bank includes some type of expense, negotiate to eliminate it by including payroll and supplies in the main account or directly change banks.
Variable profitability: There will certainly be very little profitability that you receive for the money you deposit in these accounts. However, some banks have savings accounts that offer more attractive returns than others, which can even reach up to 2% APR. If your bank has one of these characteristics and you have a conservative investment profile, it is undoubtedly a very good option, at least to deposit part of your savings.
Exclusive benefits for contractors: Banks and savings banks reward new savings account customers with exclusive discounts in stores, purchases of certain brands, fuel... We are not just talking about the classic set of pots and pans, but also about day-to-day benefits such as the return of a percentage of direct debit bills for water, electricity, telephone, internet, and gas.
Recruitment: Its opening is agile and simple. The natural thing is that if you have a mobile banking account, you just have to go to the relevant option and in a few minutes you will have it operational
Availability of your savings: In this sense, it also depends a lot on the bank where you have the checking account, but the natural thing is that they neither charge you nor penalize you for withdrawing money when you need it. In this regard, how high or low the profitability percentage is is key: the higher it is, the less availability. It is also an option that you can negotiate with your entity.
Anti-fraud: Savings accounts have anti-fraud services that protect your savings and that some financial institutions complement with free accident or home services.
Disadvantages of opening a savings account
As we have been explaining the advantages, it all depend on the financial institution and how you negotiate the opening of the account (with important direct debits in the main account, with high profitability, etc.), but in general, we find certain disadvantages such as :
Overdrafts: In a savings account, the option of having it overdraft cannot be given, which can be inconvenient if you need money at the moment and you don't have accounts or you can't access mobile banking.
Credit card: Some savings accounts do not allow linking with a credit card, so you will not be able to use the savings to pay for common purchases.
Minimum amount: Some savings accounts require you to open or maintain the savings account with a minimum amount of money, so there are times when if you need the money in the short or medium term you have to remember that you will not be able to leave the savings account without cash.
Few benefits in interest: As we already mentioned in the profitability section, the most you can get on average for a savings account is 2% APR. If what you want is to obtain a higher return on your savings, there are other banking products that give better interest than savings accounts (although they also usually have stricter conditions or a certain level of risk).
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