Money is a precious commodity that demands respect, value, and protection as it represents the hard work, time, and effort invested in earning it. So, it is natural to find ways to secure and grow your savings while ensuring easy accessibility. This prompts many individuals to deposit their money into a savings account.
However, a crucial question arises: Are you keeping your money in just one bank? While it may seem convenient to have all your funds in the same bank, there are some risks associated with this approach. Discussed below are such risks with valuable insights on how to protect your savings.
- Limited access to interest rates and other banking services
Different banks have different features and services. For example, one bank may offer high interest rates on savings accounts and fixed deposits but have limited branch locations. Another bank may have a wide network of branches and higher ATM withdrawals but lower interest rates. So, it is advisable to open savings accounts with multiple banks to diversify your funds and get the best deals and services they offer.
- Missed opportunities for sign-up bonuses and rewards
Many banks offer sign up bonuses for new customers who meet certain criteria, such as completing a set number of debit card transactions or shopping from a certain outlet. By not exploring other banks and their offers, you could be missing out on thousands of rupees in rewards. To take advantage of these missed opportunities, list down multiple banks and assess their features. After that, carry out the bank account opening process with those ones that offer attractive rewards.
- Lack of expense segregation
Using a single account for all your expenses can make it challenging to track and manage your spending effectively. It becomes harder to differentiate between essential expenses, savings, and discretionary spending. By maintaining multiple savings accounts dedicated for expenses, savings, investments, you gain greater control over your finances. This approach facilitates more accurate budgeting and helps establish long-term goals.
To find the best options, you cancompare savings accounts offered by different banks and identify ones whose features and services hold value to you.
- Inability to budget and save for different goals
When you keep all your money in one bank, it becomes difficult to budget and save for different goals.
For example, if you have a savings goal of purchasing the latest car model and also want to save for a big family vacation, you may find it hard to divide these funds if they are all in one account. This could further lead to a lack of discipline and temptation to spend on unnecessary items. Thus, it’s wise to open multiple savings accounts for each goal, giving you a clear picture of your savings.
- Risk of technical glitches or server issues
If you rely on a single provider, you may face difficulties in accessing your funds or making payments if the bank encounters technical glitches or server issues. This can create major inconveniences, especially if you have recurring bills or need to withdraw cash urgently. When you have an online savings account with multiple banks, you can quickly switch to another bank to perform your financial activities without any interruption.
To conclude
Why keep your money in one bank when you can leverage savings account benefits offered by different banks? Simply visit their website, check the features of their savings account, and apply online. Make sure to use a savings account interest rate calculator to find out how much interest you can earn on your total balance and interest rate offered by each bank. This way, you can identify those banks that are offering competitive interest rates and maximise your earnings.
