The Benefits of Savings Accounts
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Is there any benefit to opening a savings account?
With the introduction of new investment vehicles and opportunities on a consistent basis, you may think that savings accounts have long outgrown their usefulness. But these nifty accounts aren't ready to be counted out yet‹they still have some value in the portfolio of even the most sophisticated investor. If you haven't thought about how savings accounts can help you reach your financial goals, consider these points:
- Savings accounts offer a low-risk location for cash that you need to hold for a short term.
- Savings accounts offer a great place to let cash accumulate into larger sums.
- Savings accounts act as investment intermediaries while you decide where to invest your cash long-term. This allows you to still earn interest while you research your options.
- Savings accounts teach children the value of saving in a low-risk manner.
- Savings accounts can help protect your account from dramatic losses by presenting little risk of loss of principal.
So don't count out the old, traditional savings account. Instead, determine how to best use one to suit your investment objectives.