Advantages and Disadvantages of a Personalized Savings Account

Save

When it comes to customized banking, the name of the game is to make the experience as easy for you as possible. Custom accounts that match your personal goals make it more likely that you will use all of the banking tools at your disposal. This is the premise behind personalized savings accounts. When a bank or credit union works with you to reach a savings goal, you may be more likely to do so.

Advantage: Same Features

  • Just because you are saving for something specific doesn't mean you want to lose all of the perks of savings accounts in general. However, in most instances, even if you have a personalized savings account, you still yield the same dividends as a traditional savings account. This is the bank's way of continuing to reward you for saving money with that particular institution.

Disadvantage: Taking the Account Less Seriously

  • Depending on the personalization, you may be apt to take the account less seriously than you would a more traditional account. For example, if you've named the account "Birthday Savings," since you know you have time before that birthday rolls around, you might not consider it a big deal to move money out of that account to splurge on that gourmet meal or new sweater.

Advantage: Focused Savings Goal

  • A personalized savings account does keep your financial goals top of mind, though. When you've got a bank statement staring you in the face and across the top of the account, it reads "Christmas Savings," you are reminded of what you are saving for and why you are saving in the first place. This may give you incentive to stay the course and continue to add to your personalized savings account.

Disadvantage: Lack of Savings in Other Areas

  • A personalized savings account may take all of your focus and result in a lopsided savings plan. While it's fine to save for Christmas or that special family vacation, you also need to put money aside for retirement and for emergencies. A disadvantage of personalized savings accounts is that if you are all excited about adding to the new account, you may neglect to save money toward those more serious financial goals.

References

Promoted By Zergnet

Comments

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!