4 reasons to open a savings account

Whilst most people in the UK have a current account, not many have a decent savings account. There are many good reasons to save money in dedicated savings accounts or cash ISAs, including the following :

1)Save for a house or a car

These are considered to be very large purchases for most people, and not purchases that you can afford using the cash in your bank account. With money stashed away in a savings account, you will be able to afford your perfect set of wheels or the house of your dreams.

2) Save for a wedding or another big occasion

Weddings are becoming more and more expensive, with the average couple now spending £20,000 or more on their big day. You don’t have to spend this much to have a fantastic wedding, but you do need to put some money aside to be able to afford it.

3) Prepare for emergencies and the unexpected

This is one of the most important reasons to save. Think about what you would do if your car broke down and needed expensive repair work, if you needed to buy a new boiler or if your house flooded. This is what savings are for, to help you to prepare for the unexpected.

4) Save for retirement

You may not be able to rely on a state pension by the time you retire, but you can count on the money in a private pension or savings account to give you a comfortable living once you’ve retired.