Question

When would it be a good idea to put your money in a savings account instead of investing it

Answer 1

If the interest rate the savings account pays is very high, and the investments you could consider are very risky or provide lower rates it would be wise to save instead of invest.

Answer 2

It would be a good idea to put money in a savings account instead of investing it because it offers a fixed amount of interest and easiest liquidity.

What is a savings account?

An account type offered by every commercial bank, where a customer can deposit his or her money and get returns over such deposit, is known as a savings account. It ensures safekeeping of funds.

Investments are subject to market risks, and there is no safety of funds. It does not offer any fixed returns like savings account. It becomes convenient to put money in a savings account.

Hence, the significance of depositing money in a savings account is aforementioned.

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