According to a recent survey, more than half of UAE residents struggle to save, while nearly a third admit to not saving a single dirham every month. One potential reason for this could be that many do not actively use a savings account.
In simple terms, a savings account allows you to keep money you want to have access to at any time. The money deposited in a savings account accrues interest on a yearly base in the UAE. In this article, we will explore why you should have a savings account and some of the ways you can make it work for you.
One obvious benefit of a savings account is that you can make your money work for you by simply leaving it to sit and accrue interest. Remember that the more you deposit, the more interest you can generate over time. In some cases, you may also get preferential interest rates on larger deposits so make sure you check with your bank.
To get a sense of how much you can earn over a given period of time at a specified interest rate, a savings calculator can be useful. There are many calculators available online for free.
In addition to earning interest, some banks offer perks and rewards to customers who save and maintain a certain balance over time. Many banks have privilege programs in place that encourage customers to save by rewarding them with loyalty points such as Citi’s Emirates Advantage account.
Savings account holders earn a set number of Skywards Miles based on the value of the quarterly account balance. There is usually a minimum balance that should be maintained in order to qualify for air miles, to carry them forward, to earn access to more than 900 airport lounges worldwide and to avail the benefits and perks such as Emirates Skywards Silver Membership.
Saving can be difficult. Putting aside a certain amount of money as soon as your salary is credited is one effective way to curb impulsive spending and ensure that you are saving on a regular basis. Once your savings account is set up, the process of managing it is actually quite simple and hassle free. You most likely won’t have to do much besides checking the monthly statement to view your balance and interest earned.
People who are not saving for a specific purpose can use their savings account as an emergency fund that they withdraw from. Personal finance experts recommend having at least three to six months’ worth of living expenses in savings that can help you in the event of any financial difficulties.
If your savings and current accounts are with the same bank, linking the two together can prove to be practical and convenient. For example, you can easily transfer money between both accounts when needed. You can also arrange for funds to be automatically deducted from your savings account, should the balance on your current account not be enough to cover bills and payments. This option can help you avoid fees or penalties; however, such features may vary from bank to bank so be sure to check with your provider.
By following these tips, you can discover the far-reaching benefits of opening and maintaining a savings account. Once you get accustomed to putting money aside, your mindset and habits will gradually change until saving money becomes just as easy as spending it.
Customers in the UAE who open a Citi Savings Account can enjoy saving in several major currencies, competitive interest rates, and customer-centric digital banking services. Citigold clients who open a Citibest account with a minimum balance in the range of $0 to 9,999, can earn 0.05% in interest on a monthly basis. Interest rates of 0.10% and 0.15% apply to Citibest accounts with balances ranging from $10,000 to $999,999 and $1 million or more, respectively.
Estate Planning Estate planning is more than advanced financial planning; it’s guaranteeing that your legacy lives on and creates generational wealth. A well-rounded estate plan requires careful planning and attention to detail – whilst planning for all possible future outcomes.
Credit cards offer benefits, convenience and purchasing power… but they require smart credit management to avoid common credit card mistakes. Through responsible credit card use, you will be able to maintain financial stability and make the most from the benefits offered.
How they workScammers pretend to be officers from Citi and will inform you that your credit card has been blocked due to unauthorized transactions. They will ask you to re-activate your card by clicking links in their emails or by providing your card details and One-Time PINs on a fake website.
This article is intended to provide general information about finance and investments and does not replace or should be taken as professional financial advice. The content reflects the view of the author of the article and does not necessarily reflect the views of Citi or its employees, and we do not guarantee the accuracy or completeness of the information presented in the article except information on Citibank N.A. – UAE products referenced herein.
