It’s important to use all the financial tools available to enjoy a comfortable life later in this modern world. One of the best ways to store your savings is by opening up a savings account. To enjoy a successful retirement, it’s essential to maintain a healthy balance in your savings account. Here’s everything that you need to know about opening a savings account in the UAE!
What Is A Savings Account?
A savings account allows users to store their money safely and earn money on top of their deposit in the form of interest. It’s essentially the bank paying you to keep your funds deposited, and annual yields depend on the rate that the bank offers. Some banks also offer insurance so that you can save your funds securely without worrying about economic conditions too much.
How Does A Savings Account Work?
When you open a savings account, you get the opportunity to start earning interest the minute you submit your first deposit. The money that sits in your saving account will earn interest that the bank will pay.
You’re free to continue depositing money into the account and work towards the ideal savings goal. They’re a great fund if you want to store money for a short-term goal or build up an emergency fund. You can also withdraw money from these accounts, but there’s a restriction on the number of withdrawals!
Why Open A Savings Account?
One of the key techniques of effective budgeting is keeping everything simple. Having a savings account allows you to make handling your finances much easier. Here are five main reasons why you should open a savings account!
Emergency Savings
If you can’t find any reason to open a savings account, one of the most basic reasons you should have one is emergency funds. The good idea is to keep close to six months of savings in the account. The best idea is to have an emergency fund before realizing that you need one.
Automotive Purchases
A great way to use your savings account is by maintaining your automotive expenses. Cars are costly to maintain and even more expensive to purchase. It’s going to take a significant amount of saving to ensure that you can get the vehicle you desire. By opening a savings account, you can set aside money for automotive purchases each month!
Vacation Savings
If you love to travel, you can also use your savings account to facilitate your wanderlust. Set aside money each month securely and earn a little extra on top of your account.
Which Banks Offer The Best Interest Rates?
Now that you know why you should open a savings account, here’s a low down on which banks offer the best interest rates.
FAB Bank
FAB Bank gives clients the opportunity of opening their personal savings account without a specific minimum monthly salary requirement and opening fees. The only requirement is maintaining a minimum monthly balance of AED 3,000 or more.
National Bonds myPlan
The National Bonds myPlan program offers annual rates of up to 4%
HSBC Term Deposit Account
HSBC current account holders can open the HSBC term deposit account. Their account offers different rates depending on the amount of time you save money. Customers that save for one month can get an interest rate of 0.25%, which will rise 1.45% over the year!
