Mya wants to deposit her weekly allowance into a savings account. She plans to make regular deposits and withdrawals. What is one disadvantage of Mya having her money in a regular savings account?

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Tigger

Mathematics

9 December, 01:36

Mya wants to deposit her weekly allowance into a savings account. She plans to make regular deposits and withdrawals. What is one disadvantage of Mya having her money in a regular savings account?

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Frost · Answer 1

Saving accounts allow you to hold your money while you earn some interest, and you have access to it whenever you need. But, how is a saving account safe? Well, saving accounts represent money that banks do not touch to use to their investments, that's why it's available for you all the time.

However, saving accounts have disadvantages, beacuse the return of a saving account has a low rate, that means you earn little money, because the interest you earn has a low percetange, it's almost no worth it to maintain your money there.

Additionally, your withdrawals are restricted to specific amount of money, so if you have a lot of money in the account, you can't have access to it that quickly.

Therefore, these disadvantages are present for Mya's savings account.