What is savings?

Savings are deposits of money you place in a bank or financial institution with the primary goal of storing and managing funds. This money can be accessed whenever you need it, usually with a small amount of interest.

Simply put, saving is the first step to developing the habit of managing finances safely, practically, and flexibly.

Functions and benefits of savings

•Security

Keeping money at home risks it being lost, stolen, or used without control. With savings, your money is stored in a more secure banking system and supervised by the OJK, reducing potential losses.

• Easy access

You can withdraw or transfer money via ATM, mobile banking, or internet banking whenever needed. This feature is very useful for emergency needs or daily transactions without having to visit a bank branch directly.

• Helps manage finances

With savings, you can separate money according to purpose: for example, daily funds, emergency funds, or savings for holidays. This helps you be more disciplined and not mix short-term needs with long-term plans.

• Earn interest

Although savings interest is relatively small, your balance will still grow over time. This interest is a form of appreciation from the bank for the funds you save, so it can be an addition, though not significant.

How do savings work?

• Open a savings account

The first step before you can use savings is to open a savings account at your chosen bank. Before digital banks existed, you usually had to go to a branch office and open an account there, but with digital banks, you can open an account through the bank's application.

• Next, you can start filling your account with savings

After your account is successfully created, some banks require their customers to fill their accounts with an initial balance. The nominal varies from 50,000 to 500,000 rupiah. Usually, this is for account activation after the registration process is successful.

• You can use your savings for transactions

After the initial processes are successful, you can start using your savings for various purposes such as transfers, payments, or just for saving.

Tips for consistent saving

• Set clear goals

Saving without a goal often makes people give up quickly. By setting goals such as a vacation abroad, buying a new gadget, or building an emergency fund, you will be more motivated to be consistent.

• Set aside money at the beginning of payday

Saving is more effective if done at the beginning before the money is used for daily needs. The principle is pay yourself first, so savings do not depend on remaining expenses.

• Use the auto-debit feature

Many banks provide an auto-debit feature, which automatically deducts funds from your main account and transfers them to your savings account. This method helps you save disciplinedly without having to remember or do it manually every month.

• Separate savings and daily spending accounts

By separating accounts, you are not easily tempted to use savings for consumptive purposes. A special savings account will function as a "safe zone" that you rarely touch, except for important purposes.

Savings are a simple yet important financial solution for anyone who wants to be more organized in managing money. By saving, you can keep your money safe, manage cash flow better, deal with emergency needs, and achieve short-term and long-term financial goals.

Frequently Asked Questions

• What is savings?

Savings are deposits of money in a bank that can be withdrawn at any time and usually earn a small amount of interest.

• What are the main benefits of savings?

Storing money safely, facilitating transactions, helping to manage finances, and providing additional interest, however small.

• What is the difference between savings and deposits?

Savings can be withdrawn at any time, while deposits can only be withdrawn according to a certain period (e.g., 1, 3, or 12 months).

• How can I save consistently?

By setting clear goals, saving at the beginning of payday, using auto-debit, and separating savings accounts from spending accounts.

• Are digital savings safe?

Yes, as long as the bank or digital savings application is officially registered and supervised by the OJK, your funds will remain protected.