Saving Accounts in Lebanon: Wasted Opportunities or Recourse on Rainy Days?
With the Christmas holidays almost just around the corner, we’re all starting to count our hard earned money.
“Do I have enough money to splash out on presents for everyone?” is a question we’ll be asking ourselves very soon, if we haven’t asked it already. Are you finding yourself a bit strapped for cash this year? Then consider looking into a savings account at a Lebanese bank at least you will be saving yourself for next year.
“I don’t mean to sound stupid, but what exactly is a savings account?” I hear you say. “And how does it actually work?” Well, here are the answers to those all important questions that you might be too shy to ask.
By definition, a savings account enforces you to save money by not allowing the same ease of access as you would encounter with your current or checking account. So, the money in it is not money you would generally use for your day-to-day expenses, but funds that you are happy to tuck away for a rainy day.
There are different types of savings accounts; including the regular savings accounts with instant access - does what it says on the tin i.e. allows you to access your money instantly (but at a price: being either lower interest rate but higher flexibility as it is for the Sight Savings Account, or a penalty applied on withdrawals from a term deposit account), and the Savings Plans - monthly deposits are required.
Banks’s cycle works like this:
1. You open an account in a Lebanese bank and deposit your money.
2. The bank pays you interest on the money that you have deposited.
3. The bank can then lend your money to other people and charge them an interest rate higher than the one they are paying on the deposits.
4. Everyone is happy
But what are the pros and cons of taking out a savings account at a Lebanese bank?
Pros
Guaranteed Interest Rate
Accessibility
Rainy day funds
Encourages sound financial habits
Safe and convenient growth
Cons
Low returns / Missed opportunities
Minimum balance required to earn interest
Withdrawal limitations
Fees applied
Some of these pros and cons might sound similar, for example when it comes to interest rates. However, you have to decide what kind of person you are – are you a Safe Sami or a Risky Rita? If you know your stuff and are willing to take the risk, then there are definitely more lucrative methods of investing your cash. But, on the other hand, if you are a bit of a nervous type, then savings accounts are for you.
For more info on saving plans in Lebanese banks, visit the “Savings Plans” tab on Bnooki.com or simply click here.
You can also check bnooki.com to compare accounts and benefit from the team of experts that is available to help and provide you with the adequate loan or account advice free of charge.
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