Despite the difficulty, saving money has become a necessity due to the successive crises and recurring emergencies that most of us are going through, and that is why many people seek to obtain bank loans or credit cards or borrow from acquaintances and friends.

And the economic website “Forbes” published a report by the authors, Kunal Varma and Ashika Jain, who emphasized that having an emergency fund or good savings makes a person relaxed and helps him in facing any financial crisis that may appear to him, and they also explained that saving money is a matter of habit that begins slowly and then Accelerate and become an asset in human life.

In their report, the authors emphasize that saving money arises out of habit. Once you start, you won't stop. The simplest way to start saving money is to make a list of your monthly and yearly expenses. When you want to spend, ask yourself, "Do I need this now?"

As this creates an environment in which you can save successfully, and enables you to identify the things you do not need, and in this regard, the 50-30-20 rule can be relied upon, which means that spending on necessities should make up 50% of your income, and spending should be categorized on your habits and interests as desires and makes up 30% of your income, and the remaining 20% ​​or more should be discarded as savings.

The authors pointed out that not so long ago, most people were keen to open savings accounts with banks, which had difficult and not easy conditions for everyone, but today they offer many options.

What is a savings account?

The authors show that a savings account gives you the opportunity to save your money, as it falls under the category of liquid investments that are easy to withdraw whenever you need, even if some savings accounts may have restrictions on the time of withdrawal of funds, but they are often flexible in withdrawing savings, in addition to It is a good option if you are planning to build an emergency fund, go on vacation or want to buy a car.

The authors point out that you can sign up for an online savings account, which offers high interest rates, and is faster than traditional savings accounts, noting that a savings account also helps pay your bills and even make investments, and in general, a savings account keeps your money safe and saves You have convenient ways to spend this money.

Types of savings accounts

According to the two authors, there are many types of savings accounts, and each has a special function that it performs and provides different benefits:

Standard Savings Account:

This is a regular savings account that gives you interest on the amount you have deposited, but there is a limit to withdrawing from the account.

Salary Account:

This account has no minimum balance requirement and will not earn you any interest, and is transferred to a savings account if your salary has not been withdrawn for at least 3 months.

Women's savings account:

It is designed specifically for women who are self-employed, as it offers them lower interest on loans, and they get all the benefits of a regular savings account.

Children's Savings Account:

This works to encourage children to save, and is characterized by having zero balance requirements and the same benefits as a regular savings account.

Seniors savings account: Seniors

use it to manage their pensions and savings, and it comes with special features like high interest rates for deposits.

How does a savings account work?

The authors explain how savings accounts work, saying that banks earn - mainly - by lending money to people, as the bank uses your savings account to lend money to others at a higher interest than they give you.

However, you can also withdraw your money anytime you want.

Benefits of opening a savings account

The authors put several benefits of savings accounts, including:

A savings account keeps your money safe in a secure banking system.

Interest rates are more stable than other investment options such as trading and mutual funds.

Helps save more money. When saving becomes a habit, you will rarely use the money to buy things you don't need and will focus on goal-based spending.

If you save enough in your savings account, banks will be more willing to give you credit in the form of personal loans, housing loans, car loans, etc.

With online banking, you can set up automatic deposits and save money steadily every month.

Few of the private savings accounts provide valuable services and facilities, where you can choose an account based on your requirements and the average minimum quarterly balance that you can maintain.

Some banks also offer discounts on safes if your minimum quarterly balance is higher than a predetermined limit.

International debit cards, discounts on gold products, and benefits for families are some of the benefits you can get from savings accounts.

You can always choose a zero balance account if you cannot maintain the minimum balance requirement.

You get reward points for every transaction.

Open more than one savings account

The authors assert that one person can open as many savings accounts as possible, for the following reasons:

It will help you track your savings and goals more effectively.

Automatic debiting of money to your secondary savings account will prevent you from spending money.

You will be more responsible and look for different ways to create wealth.

Multiple accounts mean you'll have more withdrawal power when you need cash.

Different savings accounts offer unique benefits, where you can choose a savings account based on your needs.

The difference between a checking account and a savings account

The authors explain that a checking account and a savings account are very different, although they may look alike. A savings account is for people who want to save money or build money for emergencies or goals, while a checking account is created for day-to-day transactions and is often used as a business account. Here are the main differences Between a savings account and a savings account:

current account:

Created for normal transactions.

Generally used by companies, businesses, organizations, etc.

You will not earn any interest from checking accounts.

No transaction limits.

saving account:

- Helps you save money.

- Helps you earn interest.

You need to maintain a minimum balance (it varies from bank to bank).

Introduction to benefits and other financial products.