Which of the following is not a benefit of putting money in a savings account? a. You can make frequent withdrawals. b. You can earn interest. c. It is harder to spend the money. d. The money is safe and secure. | Homework.Study.com (2024)

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Which of the following is not a benefit of putting money in a savings account? a. You can make frequent withdrawals. b. You can earn interest. c. It is harder to spend the money. d. The money is safe and secure. | Homework.Study.com? ›

Answer and Explanation:

C) Protections against inflation is not a benefit of a savings account. Inflation is a decrease in the value of cash over time due to financial and monetary policy that means that prices of goods and services increase faster than the value of money.

Savings accounts allow your money to work for you by earning interest over time and facilitating automatic bill payments, contributing to effective financial management.

It allows individuals to deposit and store their money while earning a certain rate of interest on the deposited amount. The primary objective of a savings account is to encourage individuals to save money over some time, providing them with a safe and accessible place to keep their funds.

Savings accounts offer one of the simplest ways to earn interest on the money you have. They offer higher interest rates than a regular checking account, while still making it easy to spend and withdraw money.

If you have between £6,000 and £16,000, every £250 is viewed as £1 per week in income. This means your benefits can be reduced. Disability Living Allowance (DLA) and Personal Independence Payments (PIP) are not affected by income or savings.

Having adequate savings enables you to live a more fulfilled life. You are more likely to be less stressed about your future goals like retirement or unexpected expenses like healthcare. Savings allow you to be relieved and at ease, knowing you have sufficient funds to navigate different situations in life.

Opening a bank account can be one of the most important steps you take toward reaching your financial goals. Why? Because putting your money in an FDIC-insured bank account can offer you financial safety, easy access to your funds, savings from check-cashing fees, and overall financial peace of mind.

What is one benefit of a savings account everfi? ›

What is one benefit of a savings account? You can earn interest on the money in the account.

A savings account is a safe place to put your money when you can't afford to lose any or think you'll need it in an emergency. It's also a good place to put some of your investments as a hedge against losses – you can't lose everything if some of your money is in an ordinary savings account, after all.

A savings account is a type of bank account designed for saving money that you don't plan to spend right away. Like a checking account, you can make withdrawals and access the money as needed. But with savings accounts, the bank pays you compounding interest just for keeping funds in your account.

A savings account does not offer the benefit of regular and unlimited withdrawals to the account holder like a current account. There are federal restrictions that limit the number of times an individual or a company can withdraw money.

Saving money is a cornerstone of financial well-being, providing stability, security, and opportunities for long-term growth. Whether you're saving for emergencies, future expenses, or retirement, cultivating a habit of saving is essential for achieving financial independence and realizing your goals.

-Provide you with a safe place where you can store your money. -Savings accounts provide you with FDIC insurance. -Savings accounts allow you to earn interest.

Unfortunately, the long-term impact of not saving offers no preparation for retirement, a lack of financial independence, and puts you and your family at financial risk in the event of an emergency or life event for which you are unprepared.

Savings bond, Certificate of deposit(CD) and basic savings are all types of savings. These will earn interests over the initial amount in certain period of time. But stock market is not a type of savings, rather its a platform where one buys and sells stocks.

Saving money is like stagnant water, it's not going to take you forward. This is because if you stash every dollar you earned into a piggy bank or bury it in the garden, you still will only have the sum you hid away – no more. And over time its purchasing power gets smaller. The bank isn't much better.