How can ones savings bank account help manage finances?
One is less likely to spend if money is in a savings bank account. Also, putting money in a savings bank account is safer because it is insured. If your home is robbed or burned down, you could lose money forever. One can also earn with the savings bank account. A savings bank account earns “interest” or money the bank pays so that they can use it to fund loans for other individuals. Here’s how: • The bank pays interest on the money deposited and maintained in that account. • The bank then loans that money to other persons, charging a slightly higher interest rate on that loan than what they pay in a savings bank account.
