Planning Ahead for a Recession with a Savings Account

Savings accounts are very important financial tools in the present day, as it helps individuals maintain a stable financial situation in many ways. One major benefit of savings accounts is the ability to use it as a facility in times of economic recession, however, only if it is used wisely. By choosing to open a General Savings Account, with HNB Finance, you are equipped with the right tools to emerge from a potential recession. Here are just some of the ways you could plan ahead with a savings accounts when expecting a recession with the assistance of one of the best finance companies in Sri Lanka.

Use as a Financial Safety Net

Savings accounts often act as a financial safety net, especially since the money you put in the account have two of the main functions, namely the precautionary motive, and the speculative motive. In other words, it is natural that you would want to save money in case of an emergency, without spending it on consumption right away. By apportioning a generous fixed amount to your savings account, while you use the rest of your earnings for your operating expenses, it will allow you to save more for when anything happens in the future, such as a recession. When recession does hit, and you have a diminished source of income, the savings account acts as a safety net to make sure that you can at least cover the operating costs of day to day life. You do not have to worry about not being able to utilise you savings account, as it is always insured.

Investing Tool for Business Opportunities

By skillfully utilising your savings account when an impending recession is about to hit the country, you have the opportunity to invest in some unique business opportunities. One of the biggest opportunities that arises during recession time is the consumer goods markets, which include everyday essentials such as food, and other products. By having excess savings, you also have the potential to invest in filling the inefficiency gap of the consumer goods market that will inevitably occur during recession. Here, you are able to not only use your savings to earn during hard times, but also use it to benefit the greater good.

Steady Income Generation Through Interest

One of the unique benefits of opening a savings account with HNB Finance is that you are entitled to attractive interest rates that would act as a fixed income even during recession. We offer more than six percent interest on savings account balances of more than LKR 1 million, which can act as a satisfactory income if you are speculating a recession in the very near future. In other words, saving a lot today guarantees a secondary income generator that will better prepare you during hard times.

Tool to Maintain a Stable Standard of Living

Using the HNB Finance General Savings Account, it will help you determine just how much living expenses are incurred. This is possible, as every transaction can be tracked with the use of electronic notifications through SMS, making it possible to understand what transactions are the most important, and what can be neglected in a time of recession. Thus, it is possible to adjust to a utilitarian lifestyle that would not be harmed even if the economy is not performing well. In other words, the savings account allows you to maintain a stable standard of living through hard times.

The General Savings Account offered by HNB Finance does not only act as a facility that ensures the safe keeping of your hard-earned money, but it also acts as an instrument that helps in pushing through economic difficulties such as a recession.