Incentives for having a savings account
It’s all too easy to push saving to the bottom of your priority list, especially after paying your usual monthly outgoings such as bills, rent and groceries. So why save? Why not enjoy what money you have left every month now, and worry about tomorrow later? Whilst living in the moment is important, there are plenty of benefits to opening a savings account, whether you’re just thinking short-term and want to save some extra money for a rainy day, or you’re thinking long-term. Here is a list of benefits and tips for having a savings account and making sure it works for you…
  1. Earning interest

Although interest rates fluctuate, having a savings account is the only way to make money by essentially doing nothing i.e. keeping it in one place and not investing in further assets. They’re also low risk when compared to traditional investment opportunities and have the benefit of no monthly maintenance fees!

  1. Emergency cash

A savings account helps you accumulate a rainy-day fund in case you are hit with any unforeseen expenses. Given the current economic uncertainty, having a little extra saved should give you extra peace of mind.

  1. Budgeting

After payday, it is easy to get carried away with retailer deals, especially in the lead up to the holidays. Having a savings account helps you develop responsible spending habits, supporting you to budget for food, rent, utilities, entertainment, or travel. We recommend linking your current account to your savings account via a direct debit, meaning you are automatically saving post payday without even thinking about it.

  1. Treat yourself

A good incentive for having a savings account is being able to grow your penny pot to save up for pricey items or an experience. Save up now, so you won’t miss out later!  

  1. Protect your regular account from overdraft fees

With a savings account, you can effortlessly link it to your regular bank account: this means that you can keep overdraft fees at bay by feeding in extra cash from your savings, should you need to.

  1. Financial independence

Having a savings account is the first step to giving yourself freedom from the Bank of Mum and Dad. It helps you feel confident about managing your expenses and gives you a cushion for whatever life (or the rest of 2020) throws at you.

RCI Bank offers a range of savings accounts so whether you are a long-term saver, a rainy-day spender or somewhere in between, you should be able to find a savings account that is just right for you. Check out our Freedom savings account, 1-5 years Fixed term accounts and our 95-Day Notice Account here:

Ask the expert: What has the third lockdown meant for savings?
22 Mar 2021
What you wish you'd known about money earlier
05 Mar 2021
Kids rule at savings school
15 Feb 2021