Once you start working, you start earning money that you can use for necessities and wants in life. You can buy yourself a new pair of shoes or maybe a new appliance for your house. However, many things in life cost a lot, making them almost impossible to buy with just your monthly salary.
If you were to use up all your funds for a single expense, you might have difficulty providing yourself with your monthly needs. You can prevent that by opening a savings bank account in the Philippines.
What is a savings bank account? It is a deposit account where you can store your money safely for future use. You can access your money by withdrawing it from physical branches or transacting directly through an online mobile application. Through this account, you may also receive interest from the financial institution if you maintain a certain balance.
If you’re considering opening a savings account, look no further than Cebuana Lhuillier. Our goal has always been to provide Filipinos with accessible financial services, and over the years, we have adapted to the needs of our customers. Through our micro savings accounts, we give low-income individuals opportunities to start securing their financial futures.
Is Opening a Bank Account a Good Way To Save?
One of the best ways to set money aside for future expenses is by opening a savings bank account. Sometimes, when you have physical cash on hand, you might misplace some of it or spend more than you need because of how readily available it is. On the other hand, if you have a savings account, you can easily track how much you have left and manage your money in a more organized and streamlined manner.
In addition, you can open more than one savings account and assign dedicated purposes for each one. For example, one account can be used specifically for your child’s college fund while another is primarily for large expenses, such as appliances and investments. By creating separate accounts, you can ensure the money will be spent for its intended use.
If you plan to open more than one account, you should also consider the different types of savings accounts. Here are some examples:
Regular Savings Account – This account is what most people get when they decide to start saving money. It usually has a low minimum deposit amount, making it easier to maintain than other types of savings accounts.
High-Yield Savings Account – If you want higher interest rates, go for this kind of account. This is usually offered by online banks, so you might not be able to withdraw money from the ATM. Instead, you’ll have to transfer it through online banking.
Specialty Savings Account – This savings account can help you save money for a goal by restricting how much you can withdraw. These accounts can also be designed for specific individuals, such as children or students.
Micro Savings Account – If you can only afford to deposit small amounts into your savings, this kind of account may be best for you. They typically have no minimum maintaining balance and you can often still earn a small interest.
What Can You Do With the Money You Saved?
The main purpose of saving money is to accumulate enough funds to reach your goals. This means that, at some point, your savings are meant to be spent. If you’re not sure what to save up for, we’ve listed some recommendations:
Fund Your Studies or Hobbies
If you are a student, saving money is a good practice you should adopt early. This can help you pay for things that cost more than your allowance. For example, you can help your parents pay for your tuition fees by setting some cash aside from a part-time job.
Aside from this, you can also save up for your hobbies. If you want to buy painting materials to create art, you won’t have to ask your parents for the necessary funds.
Give Back to Your Loved Ones
Having enough savings allows you to thank the people you love the most. With your accumulated funds, you can surprise friends with gifts on their birthdays or treat your family out to a meal at their favorite restaurant.
Sometimes it’s necessary to borrow money to pay for large expenses, such as appliances, hospital bills, and tuition fees. Debts for these loans can accumulate if you’re not careful with how you spend your money.
With a savings account, you can hold yourself accountable by depositing a certain amount every month to help you clear your debt. Once you’ve paid them all off, you can then start saving money for yourself and eventually lessen the need for large loans.
Buy New Appliances or Furniture
Certain appliances and furniture are essential for our everyday needs. Some of the most important ones are used in the kitchen, such as stoves, refrigerators, plates, and utensils. If any of these items break, preparing meals will be much more difficult unless they are replaced immediately.
With the money you have in your savings account, you can easily purchase new items without having to worry about using out-of-pocket funds that you would’ve spent on other important expenses.
One of the greatest advantages of saving money is having additional cash for leisure. If you love going on adventures in different places, you can treat yourself to a much-needed vacation after working so hard to earn your funds. Just make sure to consider the costs of transportation, food, allowance, and lodging so you don’t overspend and lose all your savings.
Open a New Savings Account at Cebuana Lhuillier
Save money for the future with Cebuana! When you open a savings account with us, you only need an initial deposit of 50 pesos to start your financial journey. You can also earn a 0.20% interest annually by maintaining five hundred pesos in your savings account.
Visit the nearest Cebuana branch today to apply.
In the Philippines, you can prepare for your future by opening a savings bank account. It gives you a place to store your money safely so you can avoid spending it on unnecessary things. It also allows you to learn great financial practices to help you achieve your life goals.
What are you waiting for? Start saving today by opening a savings bank account in the Philippines at Cebuana Lhuillier! Feel free to reach out to us for any questions or concerns.