By Stas Bekman.
Published: 16 July 2006
Saving accounts are good for depositing all those money you've saved using the saving techniques, described in this articles series. Once you accumulate a significant amount, you can then invest it or may be use it to buy something you've been planning to buy for a long time, but now you can buy it without getting into a debt.
Saving accounts are also good for emergency funds, quite often we need to have that extra money immediately, and getting it from other accounts or borrowing could be quite expensive. That's where the money from saving accounts comes in handy.
If you manage to save enough that you can live on normally for 6 to 12 months, you will find yourself in a great position. Since now if you decide to change jobs, you won't be so pressed to find a mediocre one, because you haven't had the security to take your time and find a good one. In fact you can use that to improve your income in the current company, since suddenly you are no longer afraid of asking for that raise. In the worst case, you will spend the next few months looking for an even better job.
Be aware though that you shouldn't keep too much money at the saving account, because if the inflation rate is higher than the interest you earn on the saving account, then you lose money. Also if you have any debts which charge you a much higher interest, you lose again. So try to redirect most of the money, but the emergency money to pay debts or investing into a higher interest programs.
Savings Accounts (http://www.kuro5hin.org/story/2006/1/10/211835/290)
Savings Accounts: Where's The Fine Print? (http://www.mymoneyblog.com/archives/2006/01/online_savings_1.html)
interest...why not bank online? (http://money.cnn.com/2005/10/02/pf/debt/internet_banking/index.htm?cnn=yes)