Why do I need a savings account?

How much and how often you want to save depends on your goals, but having money set aside gives you choice and flexibility so that you’ll have the means to do the things you want, such as taking that vacation, buying a car or paying towards an education. It’s also critical for financial security in case of unexpected expenses.

Here are 5 reasons why you should have a savings account:

1. It keeps your money safe
   When you carry around cash, there’s always the risk that it could be lost or stolen, but it’s also tempting to spend. If you put it in a savings account, it’s protected, it’s separate from your everyday spending and helps you establish good savings habits. You only access the money when you absolutely need it, helping you reach your financial goals faster.


2. You earn interest and your money grows
   A savings account helps you grow your money by adding a percentage to your balance amount. When you open a savings account, you can earn interest on your balance so that every month, your money becomes a little more, giving you a reliable and consistent way to grow your money.
   
   Learn how earning interest helps you grow your savings.
   
3. It’s accessible
   Depending on the type of savings account you choose, your money is easily accessible. A transactional savings account, for example, lets you move money in and out of your account whenever you need it.
   Tip: If you want your savings to be immediately accessible, look for savings accounts that offer immediate access to your funds.
   
   Explore the different savings accounts available.
    

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4. It helps you work towards your goals
   If you’ve got a target amount or specific goal you want to reach, a savings account makes the process more efficient. It provides you with a dedicated account for that goal and creates a separation between the money you want to spend and money you want to save while making it easy to track your growth.
    

   Short-term savings checklist

5. It’s simple to start
   Setting up a savings account is a fast, easy and affordable way to manage your money and start saving. While some savings accounts require an opening deposit, accounts like SaveUp and PureSave don’t, which means you can start your savings journey with any extra money you have left over each month.

How to cut down your spend to make way for savings

• Draft a budget every month
• Understand the difference between what you need and “nice to have”
• Keep track of how much money you have left every month
• Keep track of all your purchases
• Do not use money you did not plan for
• Limit the number of trips you take to the grocery stores (this saves you petrol and the temptation to buy things you don’t need)
• Try to meal prep for the week to avoid buying take-aways
• Try to buy in bulk, especially when there are discounted deals at stores
• Have rewards cards for stores where you shop at the most

Get budgeting tips to help you get started and download our budget template.