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Why it’s important to have a savings account
Savings & Budgeting

Why do I need a savings account?

Saving is an important aspect if you want to reach financial stability. But getting started and staying on track is sometimes easier said than done.

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 and helps you establish good savings habits. You only access the money when you need it so that you can get to your financial goals faster.

  2. You earn interest
    A savings account helps you grow your money by adding a percentage to your balance amount. When you open a PureSave Account, you can earn up to 5.8% 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.

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  3. It’s accessible
    A savings account lets you move money in and out of your account whenever you want. And as a transactional savings account, a PureSave Account takes it one step further by making it convenient to use your account for everyday transactions and daily banking. You won’t pay any penalties for using this money, and you can transfer money from this account into others and link your card to make pre-paid purchases and electricity through your banking profile.

  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.

  5. It’s simple to start
    Setting up a savings account is a fast, easy and affordable way to manage your money. The choice is yours whether you want to go into a branch or apply online. A PureSave Account makes it even easier as there are no required debit orders and no management fees. There are no minimum deposit limits or set savings periods: you can add to it as and when it suits you, which puts you in control of when and how much you want to save.

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

Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).

Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.