We all know how beneficial it is to save your earnings rather than spend them on luxuries that we really don’t need. However, this is often more said than done and without a solid plan in place, it can be easy to deviate from your saving goals or just give up on them altogether.
However, the good news is all is not lost and you can implement a savings strategy that works with the help of your bank. With a term deposit account in your name, you can start to finally move the needle on your savings and move into the green. And it’s easier than you might think.
To learn more about some of the features of term deposit accounts that can benefit your savings, continue reading below.
Funds Are Locked Away For A Specified Period
The first challenge we get when we try to save money is the ease with which we can access it any anytime we want. We are therefore unable to meet our savings target if we manage to save at all. However, a the locked-away feature makes it less tempting to use your saved funds on impulse buying or simply on items you can do without.
Moreover, a term deposit account does not have a debit card linked to it, which is a plus for you. Without easy access to your savings, you save more for a longer period. Once you deposit your funds, the account helps you to commit to your savings plan.
You Earn Interest From Your Savings
One special feature of using a term deposit account is the interest you are paid for the saved funds. The interest is one of the highest that you will get when you choose to keep your money in a bank account and is a safe, low-risk way to increase your savings over time.
No Account Keeping Fees
When you open a bank account, the monthly charges you pay the bank to keep the account may appear insignificant. However, they quickly add up after a few months. And, since you are not earning any interest from a regular savings account, you end up losing money that you should have saved. Opening an account that you don’t have to pay anything to keep it active means you get to keep all your savings.
Flexible Savings Plan
It’s understandable that you may want to save money for a certain project or with a specific goal in mind. What that means is that you will need to save that money for a certain period or until your finds accumulate to reach your planned target. A term deposit accounts flexible savings plan allows you to set your targets and select a date of maturity. You will then only be able to access your funds once they attain their maturity, which should be the goal for opening a savings account.
Furthermore, if you have an emergency and you need the cash, you still have to give for 31 days notice. The goal is to make you appreciate the cost of not sticking to your savings plan. That motivates you to continue saving instead of diverting your savings to a course that will not contribute to your financial success.
Get Scheduled Payouts
You have the option to schedule the interest payouts to be made monthly, quarterly, half-yearly, or annually. What you will notice is that when you push the date of the scheduled payment to be closer to the maturity date, then you earn more. Ultimately, the goal is to help you save and earn more when you choose to be patient enough not to touch your savings.
Enjoy Greater Convenience And Save More
A term deposit account offers you limited access and high interest rates, compared to saving your money in other accounts. That means that you will achieve your savings target and exceed it over time. Furthermore, you can easily open a term deposit account online, you can be verified within two business days, and will start saving immediately. A term deposit really is the perfect solution for those who need some motivation to stick to their savings plan and move towards a more secure financial future.