Savings in Banks and Investments
Savings are defined as the part of consumer’s disposable income which is not used for current consumption, rather kept aside for future use. There are several ways through which a person can save money. The banking facilitates saving money through various forms of accounts.
1. Student Savings Account
Some banks offer saving accounts specifically for young people enrolled in high schools or colleges. The main features of these account is to maintain zero Balance.
2. Savings Deposits
Savings deposits are opened by customers to save the part of their current income. The customers can withdraw their money from their accounts when they require it. The bank also gives a small amount of interest to the money in the saving deposits.
3. Current Account Deposit
Current accounts are generally opened by business firms, traders and public authorities. The current accounts help in frequent banking transactions as they are repayable on demand.
4. Fixed Deposits
Fixed deposits accounts are meant for investors who want their principle to be safe and yield them fixed yields. The fixed deposits are also called as Term deposit as, normally, they are fixed for specified period.
Benefits of Savings
* You will be financially independent sooner.
* You would not have to worry any unforeseen expenses.
* In future, you will have financial backup in place if you lose your job.
* You will be prepared if your circumstances change.
* You will be more comfortable in retirement.
* Save today for better tomorrow
Intensity to save among the students
* Teach them about taxes and accounting.
* Involve them in grown-up money decisions.
* Encourage them to apply for scholarship.
* Help them budget and apply for student loans.
* Teach them personal savings.
Encourage them to open a student Sanchayeka Scheme.
The process of investing something is known as an investment. It could be anything, i.e. money, time efforts or other resources that you exchange to earn returns in future.
Investment can be made in different investment vehicles like,
3. Mutual funds
6. Deposit account or any other securities or assets
An investment always comes with risks of losing money, but it is also true that you can reap more money with the same investment vehicle. It has a productive nature that helps in the economic growth of the country.