One of the basic foundations of responsible financial management is learning how to save, as it comes with numerous benefits. For one, you’ll have ready funds that you can use during financial emergencies. It also trains you in budgeting, so that it becomes second nature to set aside your savings without compromising your bills and living expenses. Last but not least, your savings can even be a form of investment if handled strategically.
That being said, most Filipinos’ idea of saving is usually tied to traditional banks; perhaps that’s also where your current savings are. However, there are actually better ways to save money nowadays not only for convenience but also to help your funds grow more over time. One effective way to save more money is by opening a digital bank account. Here are some key reasons as to why you actually get more value out of your savings if you put your funds in a digital savings account.
1. Higher Interest Rates
One of the best reasons to have a savings account with a digital bank is to enjoy higher interest rates. Due to factors like overhead expenses, traditional banks usually offer lower interest rates—which means your money doesn’t really grow as much. On the other hand, digital banks can offer much higher interest rates considering they pay less costs. Therefore, your savings on a digital bank get more significant gains and thus grow faster as well.
Some digital banks even allow account holders to increase their interest rates over time. Maya Savings, for instance, starts off with 3.5% interest p.a. that you can boost up to 15% interest p.a. by simply buying prepaid load, paying bills, and using your Maya account in other qualified transactions. Taking advantage of these high interest rates allows you to steadily build your savings over time.
2. Lower Fees
While seemingly insignificant at first glance, bank transfer fees, minimum balance charges, and other transaction costs can add up quickly over time and take away from your own funds. In comparison, digital banks tend to charge fewer and lower fees; a majority don’t even require a minimum maintaining balance. This makes it much easier on the pocket to maintain a digital bank account.
3. Better Transaction Monitoring
Lack of awareness when it comes to your transactions often leads to careless spending, which can cost money that could’ve been put into your savings instead. Digital banks let you track your cashflow in detail by simply checking your transaction history, allowing you to monitor all your expenses in just one glance. This clear visibility of your spending habits can help you easily pinpoint which expenses you can cut back on or even completely eliminate to save more money.
Another monitoring feature you can utilize are real-time alerts each time you make a purchase. Getting these notifications can help you become more aware of your spending, which can deter you from making more impulsive purchases. By keeping better track of your expenses in a variety of ways, you can adjust your budget accordingly to make sure you’ve always got enough funds to allocate for your savings.
4. Personalized Savings Goals
It’s much easier to save more when you’ve got a clear goal in mind. By asking yourself, “what am I saving for?” you become more focused on reaching said goal and also less likely to be distracted with unnecessary spending. Digital banks make this easier by having built-in tools that let you track those saving goals, sometimes even rewarding you if you manage to meet them.
For instance, Personal Goals by Maya lets you create up to five personal goals that earn 4% interest p.a. monthly. This gives your savings a huge boost to help you meet those goals in less time. Make use of these financial goal trackers offered by your digital bank, so that you can feel more motivated to save more money and thus grow your savings much faster.
5. Enhanced Financial Education and Support
Many digital banks provide financial management resources and advice directly on their apps. These tips don’t just empower you to save more but also guide you in making more informed financial decisions, which can ultimately lead to more savings.
In addition, digital banks also have round-the-clock customer assistance where you can get immediate answers to questions or help in resolving issues that might otherwise lead to unnecessary fees or charges. This support gives you peace of mind that your savings are in good hands, which can be another motivating factor in saving money.
Building your savings is key to achieving financial security; it also reinforces greater discipline in the way you handle your money. Make sure you get the most out of your savings by exploring more effective saving methods, such as putting your money in a digital bank. With various benefits such as convenience, easier expense tracking, higher interest rates, and built-in financial management tools, digital banks can surely help you save more money in the long run.
