A savings account is a bank account that allows you to earn interest on your balance. Unlike a checking account, which is designed for your daily transactions, the purpose of depositing money in a savings account is to have funds set aside for emergencies or long-term goals. If you’re considering putting money aside for the future, here are a few of the reasons why you should consider opening one.

How a Savings Account at Your Bank Can Benefit You

1. You Can Set up Automatic Deposits

It can be difficult to save money when it’s just sitting in your checking account. Whether you’re saving up for a wedding or a trip, you can choose a specific amount of money you want to be taken out of your checking account and deposited automatically into your savings. If you don’t see it in your available checking funds, you won’t be tempted to spend it. 

2. It Earns Interest

One of the main advantages of opening a savings account is that it allows you to accrue interest on your funds. The interest rates can also change over time; when they rise, you will also reap the benefits of a higher percentage. While the rates are not as high as investing in mutual funds or stocks, there’s no risk, and it’s certainly a better option than storing your savings in a jar. 

3. You Can Access Your Funds

Unlike money market and mutual funds, you have easy access to the funds in your savings account. You can even request a debit card attached to your savings account from your bank. This is an advantage if you run into an emergency, such as a vehicle breakdown or injury, where you need to be able to withdraw funds from your savings quickly. 

Whether you’re planning to purchase a new home or go on an exotic vacation, don’t wait to open up a savings account. For the premier financial institution in Cookeville, TN, stop into Putnam 1st Mercantile Bank. They pride themselves on their full range of services, including online banking, financing options, and business checking. Call (931) 528-6372 today to speak with one of their friendly representatives. You can also visit their website to find your nearest location or learn more about their services.