Any time you ask someone for beginning personal finance advice, often the first thing you will hear is that you need a savings account.
  But, why do you need a savings account?  This article will explore the benefits and disadvantages of savings accounts.
1.
  Safe Place to Store More - Savings accounts are one of the safest place to save money.
  There are to types of protection that savings accounts serve.
  First, savings accounts protect you from casualty losses.
  If you are in the habit of storing money in your house, you are at risk of being robbed or losing your money due to fire or flooding.
  A savings account protects you against these risks.
When you place your money in a savings account, the bank locks up your money and places it in fireproof storage.
  2.
  FDIC Insurance - The second reason for why a savings account is a safe place to store money is from the fact that a savings account is FDIC insured.
  Since the 1930s, FDIC insurance has made banks a really safe investment.
  If the bank mismanages your money, FDIC insurance will protect you up to $100,000.
3.
  Interest - The third response to the question "Why do you need a savings account?" is that you need your money to be making you more money.
  The way that savings accounts do this is through the payment of interest.
  If you keep your money at home, you will earn nothing more from it.
  But, a savings account will pay you daily compounded interest.
I hope that this article helped to answer why do you need a savings account.