Along with the times, bank continue to improve their services by innovating products and features. This service improvement certainly makes it easier for people to carry out financial activities, including saving at the bank.
Below are the advantages of saving at the bank.
1. Interest Profits and Profit Sharing
Even though interest rates are not a major consideration for most customers, interest still has an impact on the funds saved. Indeed, the benefits derived from interest are not much. However, if you save for a long time and the funds saved over time get bigger, interest on savings will provide significant benefits.
Security is one of the important factors in saving at a bank. Because it has a layered security system, both physical and non-physical. Non-physically, in ensuring money security, and working with the Deposit Insurance Agency (LPS). When a problem occurs that has a negative impact on the bank, the customer’s money can still be taken because it is guaranteed by the LPS.
3. Freedom in Transactions
All banks offer very complete features for customers. Besides being able to save money, you have the opportunity to make financial transactions. These transaction features usually include various things, such as transfer transactions and money withdrawals via ATMs, SMS banking, or internet banking. The existence of these features makes it easy for customers to make transactions 24 hours a day. Customers also become free in making transactions.
Apart from all the conveniences or advantages offered, saving at a bank also has several disadvantages, including:
1. Not free
Basically, saving money in a bank is tantamount to leaving money in a bank as a trusted institution. Of course saving in a bank is generally not free. You have to pay administrative fees every month which are directly deducted from the funds you save.
2. Difficult to Grow Savings
Unlike investing, when you save at the bank, your money doesn’t just increase because of interest or profit sharing. The profit you get is not how much every month. It could be that savings interest money really gives you the benefits you expect. But, you have to save a large amount of money, for example Rp. 700 million.
3. Little Flower
There is not a single bank that provides high interest on savings. The average interest on ordinary savings is about 1%. The profit gained with the average interest is of course not that pronounced. Therefore, it would be inappropriate to save in a bank to get high returns.