Virtually everyone in the world has a Savings Account in one bank or another. Though some experts argue that when you save your money you lose, this is true because of inflation rate which is about 6% p.a. while interest rate is between 3.6% and 5% per annum (p.a.).
Does that mean we should stop having Savings Account? No! Most employees and entrepreneurs actually want to invest our money, but it is not easy to start with a big money and that is when you can actually be happy that you are an investor.
Meanwhile, whoever you are, if you want to be happy after retirement and in old age, you have to invest your money. While you are still young, and you don’t have big money to start with, the solution is to start investing in Mutual Funds or start with Savings Account.
Savings account shouldn’t be an end in itself. When you have a very substantial amount in your bank account, don’t just leave it there. Go to your bank and make enquiries. What most of us like to do is to go to bank and make complaints. Change your attitude from making complaints to making enquiries. Ask them for how you can invest your money. Ask them for money instruments you can purchase either in a long time or short time that will give you good returns. You have to be smart.
Moreover, instead of leaving your money in ordinary Savings Account, there are some kinds of saving accounts that have higher interest rate, instead of 3.6%, you can get up to 4.2% or even up to 5% in some banks. Go and make enquiries in your banks, conditions may be attached but they are not grievous.
Having Savings Accounts is good but it shouldn’t be an end in itself. Whenever you have a substantial amount in it, make enquiries and look for a way to invest the money for a higher return.