The Importance of Having a Savings Account in Jordan

The Importance of Having a Savings Account in Jordan

Jan 11, 2019 by AmwalCom

Regardless of your employment status or lifestyle, if you are living in Jordan today, it is absolutely essential that you open a savings account. Having a bank account is definitely the first step to organizing your finances, but opening a savings account is the first step to building a financially stable future for yourself. There are so many benefits to opening a savings account that a checking account simply does not offer. Amwalcom brings you the top reasons you need to open a savings account today!  

What is A Savings Account?

Before talking about the benefits of a savings account, you need to understand what a savings account is. A savings account is a bank account that is meant for holding large sums of money for the purpose of building interest on that money over time. With a savings account, you will have a limited number of transactions per month and no check book as the account is meant to hold the money for long periods of time rather than have money move in and out of the account constantly. You will also need to have a minimum amount in your savings account at all times. If your balance falls below the minimum balance requirement, you will likely be charged a fee.
Benefits of A Savings Account: ·        

Building Wealth

Savings accounts are about building your wealth slowly over time. Each bank will offer a certain percentage of interest that they will pay you annually on the amount of money kept in your savings account. The percentage of interest offered differs, often significantly, from bank to bank, so you may need to do some shopping around. This is a huge benefit to you as you will be “investing” your money without ever actually facing loss. Of course, the money made from interest in a savings account will be much less than if you actively invest your money, but over time it will add up to an amount that will be of benefit to you. The interest you will receive on the balance in your savings account will also act as a huge incentive for you to keep your money rather than spend it. You will find that, over time, you will be skipping a night out on the town in Amman, and instead depositing your extra cash into your savings account.

Emergency Fund

Savings accounts are built to limit the number of times you can take money out of your bank account. While your bank will likely offer you an ATM card for your savings account, the number of times you will be able to use that ATM card will be limited. On top of that, most banks offer no checking books for personal savings accounts. This means that you will most likely be leaving more money in your account than spending. This is a huge help for people looking to save money. Over time, you will find that you have built an impressive emergency fund in your savings account that you can use when you actually really need it.   ·        

Savings Accounts Offer Great Incentives

One of the coolest incentives to opening a savings account in Jordan is the opportunity to win prizes. Prizes are often offered daily, weekly, monthly, and annually. There is a catch, however, to being eligible to win the grand prize draw and that is to have the minimum balance required by your bank to enter the draw for the grand prize. This minimum balance is different than the balance required to avoid fees and will therefore be higher. On top of prizes, savings accounts will also offer you the ability to use online and mobile banking, as well as being able to deposit your money in numerous different currencies.  

A savings account should be the first step you take to building a successful financial future. The great benefits and extras offered by banks on savings accounts make it very easy to save your money over time. Savings accounts are also offered by Islamic banks for those who opposed to dealing with interest. To find out more about the best savings account options in Jordan for your needs, visit Amwalcom today.