Stop Struggling to Save: The Effortless Way to Build Wealth Automatically

An automatic savings account is a type of personal saving account, whereby deposits are made automatically from another of the investor’s bank accounts. The frequency can vary but every two weeks is most common, in line with wages payment.

Benefits of an automatic savings account

If you want to save money but are forgetful, or if you tend to spend everything you earn, then the benefits are obvious – you can schedule for the payments to be taken from your checking account before you even notice the money is there. The budgeting work is done for you! It’s surprising how quickly the regular payments can mount up into a decent amount of money, too. If you are on a lower income this can be a great way to save money without even realising it.

Drawbacks

There aren’t really many drawbacks, as you can access your money when you want – subject to the amount of time it takes to do a transfer. You might get a higher interest rate on another type of account, but that might also be at a higher risk or require a commitment that you can’t make.

Starting an automatic savings account

Next to no effort is required, just apply online and start saving. A good idea to help you save is to open your automatic savings account at a different bank to your checking account – this means it will take a few days to do a transfer, so if you are ever tempted to spend your savings, that might just be enough to stop you. Of course this means that transfer fees might apply if you really did need to use the money. It’s all about figuring out what works best for you.