Top 5 Reasons to Open a High-Interest Savings Account
If you are wanting to save some money, there are plenty of options that you will have when it comes to where you put your money. This means that you might settle for a lower interest rate so you need to think about some of the reasons why you need to open a high-interest savings account.
The first reason is that all of the returns are guaranteed. Even though mutual funds and stocks can give you the ability to earn a bigger return on your investment, there is no guarantee of the results in the future. The savings account that has high interest means that there is a guarantee that you will get a return on your money. Most of the time, the interest rates are not going to be too high, the money that you earn will be more than a regular savings account. This is because of some of the options that you will get with this type of savings account.
The second reason is that your savings will also be guaranteed. This is especially true if you have your money in a credit union. This is because it will be protected by a non-government insurer or a provincial corporation. If you have invested your money in mutual funds or stocks, then there is no guarantee that you won’t lose any money.
The third reason is that it is easily accessible. There are places that your savings will be guaranteed but there is probably going to be a period of time that the money will be locked up. Then if you choose to take your money out of the account early, you could lose some of the interest or maybe even all of the interest that was earned on the account. Even when they have a redeemable account, the interest rates will probably be a lot lower. If you don’t want to lock in your money and then you will still be able to get the interest rate that is comparable to what a high-interest savings account would be.
The fourth reason is that you will have the opportunity to save for your future home. If you are wanting to purchase a home in the future, then it will not be a good idea to invest in the stocks. This is because of the risks that you could lose a portion of the money that you have invested. That is one of the main reasons why the high-interest savings account makes so much sense.
The fifth reason is that it will be a place where you can stash your emergency cash. Since all of the money inside of this savings account is so easy to get access too, it is great to build up funds to have in case of an emergency. It is always a good idea to have some money saved up in case you have home repairs that you might not be expected to have or you happen to lose your job. Most of the time, the financial experts are going to recommend that you have at least three months of living expenses saved up. The emergency fund is the best way to make sure that you will not go in debt if something bad happens.
The high-interest savings account offers a lot of great benefits when compared to the other options that you might have for savings or investments. This means that it can be used for a variety of different purposes.