Why One Should Have a Savings Account?

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Why One Should Have a Savings Account

This is a matter of extreme discipline and consistency to maintain a savings account so we can say that a lot of work is required to run such accounts. Such kinds of accounts are quite helpful and with firm determination, it is not as tough to adopt it as a habit. Most of the locals in UAE even the outsiders can get some amazing benefits in the future if they could choose to do it for the sake of their families and future. This article is all about opening a savings account and here we are going to discuss some of the benefits we can get:

1.     Use in emergency

Most of the time we are working according to our daily routine but we can ignore the natural happenings and situations like sudden emergencies that are always unexpected. To get prepared for such kind of situation, we always need some sort of funds that should come out of our budget and this is only possible through a savings account. It is very hard to manage some extra funds and one has to take extra pressure like a sudden illness or a road accident. For sure such problems or emergency situations are hard to face but can be resolved through a savings account or other financial deposits.

If we consider emergency situations like funeral expenses, educational support of children, and house repair work, this financial matter could only be possible through savings by having a savings account in a bank.  

2.     Job Hunting

There comes a time when you have to resign from your job in a sudden manner and it is usually a traumatic situation for a job holder. Within a few days, everything comes out of track and leaves all family members in a huge financial crisis. As we all know that most of the people in the UAE are working as an ex-pat and they have to support their families back at home, such situations can only be handled through proper savings. You can’t manage a handsome amount equal to your salary and it is very difficult to borrow money at the spot. If you have no future planning in terms of a savings account then sudden job loss will put you at zero lines.

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3.     Finance your family trips

Throughout the year everyone works hard for the sake of a better life and if there is no entertainment in the form of a foreign trip, the money you earned is of no use. The majority of the people in the UAE would love to go on vacation in their free time. But with a wise eye, we can see that this is not possible without proper funds and this extra money is only possible through proper savings by having an account in a bank. If you have a savings account then your accumulated interest rate would be enough to sponsor your vacations with family or friends. Most people are not well aware of such kind of benefits and they prefer to do things in a random way. But I would suggest you get such opportunities rather than get into debt for entertainment.

How we can manage a savings account?

There are two possibilities to manage a savings account in the best way – the first option and the most suitable way is to approach a private or any well-established bank with an excellent reputation in the market. The highly skilled financial experts can guide you in the right direction for your future savings. The second option is available in the form of a financial corporation. If you ask my personal opinion, I would suggest you go to a bank. They are responsible for all kinds of financial matters and work in all situations like profit or loss. 

Now the point is if you are going to have an account in a bank, you should have a clear idea about a few things.

How much would be the interest rate on a savings account?

If we talk about a savings account it works in a unique way. The actual process is similar to a normal account. One has to open a current savings account and deposited an amount required for a certain type of account. Keep one thing in your mind there are two types of accounts – one for the long term and others for the short term. Both are equally useful but vary according to the rate of interest. Long-term account can provide you with a high-interest rate and you can earn more amount in terms of savings on the other side short-term account is relatively worked with a low-interest rate but you can draw any amount at any time.

The interest rate on a savings account also varies according to the bank. Few banks can offer you better packages and others may not. So the choice of a bank to open a savings account is really important and you can make this choice by looking at the track record. Just go for a bank providing a maximum interest rate on a savings account. 

Is it possible to have multiple savings accounts?

This is not a bad option to have multiple savings accounts but the question is how to manage these accounts. Don’t try to take a savings option for each and everything. But you can have a number of the account that you could manage easily and it’s a profitable business. You can also manage the salary account overdraft facility through a savings account. I would suggest you use electronic transfers that are possibly free of charge and helpful to manage multiple accounts. Such a type of transaction can increase your savings in a double manner because you can deposit your amount at any time just using your smartphone application.

Conclusive remarks

Yes, this is a perfect idea to have a savings account if you are dreaming to live in UAE in the long run. Life is extremely busy as well as expensive and you have to manage quick services with more assets in your account.