Savings Accounts in Lebanon: wasted opportunities or recourse on rainy days?

Published in Accounts & Savings

With the Christmas holidays 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

Cons

  • Guaranteed Interest Rate

  • Accessibility

  • Rainy day funds

  • Encourages sound financial habits

  • Safe and convenient growth

  • 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 visit http://www.bnooki.com/accounts-savings

10 Dec 2014
(1 Vote)
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Savings Accounts in Lebanon: wasted opportunities or recourse on rainy days?

With the Christmas holidays 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

Cons

  • Guaranteed Interest Rate

  • Accessibility

  • Rainy day funds

  • Encourages sound financial habits

  • Safe and convenient growth

  • 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 visit http://www.bnooki.com/accounts-savings

Last modified on Thursday, 15 January 2015 08:23

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