Is saving really outdated?

Is saving really outdated?
7th February 2022

Is saving really outdated?

“When it comes to tackling your financial goals, whatever they might be, there’s no time like the present”- Suze Orman

Growing up I always used to hear the benefit of saving little by little every now and then in a small piggy bank and one day it will be full of money. Fast forward, I think piggy bank was like a saving bank account where you keep adding money and that money will help you and surprise you with its collective volume one day. People still want to have that full piggy bank but the initiative, habit or discipline that takes to full that piggy bank is lacking somewhere in the journey. The desire to achieve financial success and stability is something that many want, however when it comes to finding a good strategy for increasing income it is not always that straightforward, but it is never too late to start working towards your financial goal whichever it may be. Intellisaving is aware that there are a lot of options to choose from for gaining extra income, so below is a detailed overview on what is available currently in the financial market.

Why may individuals find saving outdated?

Individuals may find saving outdated because it sounds simple and slow where as there are a lot of schemes and new technologies that fascinates the people to quickly earn money without waiting too much. There are, many different schemes being advertised to them on the internet, through workshops and phone calls as ways of significantly increasing their income, such as investments in property such property crowdfunding, Cryptocurrency, Equity, and billon (Gold) are investments that people may use to increase their financial income. Intellisaving recently asked a customer representative from HSBC why people may find saving outdated, and he responded with “Peoples personal circumstances, transactions and credit scores can influence their opinion on saving being outdated. It will also depend on the saving product as many saving account options are available in the market. There is a large segment of population who want to experiment with their saving strategies, however there are a big portion of people want to diversify it by adding new feathers in their saving journey however keeping the good old saving mantra alive. This is where Intellisaving would like to add value and help savers track their savings in such an effective way that it won’t be a tedious task anymore to keep an eye on your money.

There are some insights below on traditional saving accounts and other saving strategy currently available in market so you can pick and choose the saving strategy that you would like to implement for your saving goals.

What are saving accounts?

Saving accounts are interest-bearing accounts that are available in banks or financial institutes. The interest rate on these accounts is usually appealing to savers. Find out more at for the best rate savings account currently available in market.

What are the benefits of a savings account?

The benefits of a saving account is having the security and dependability of having money in a saving account. Saving accounts are one of the least risky and convenient ways of increasing funds.

What are saving accounts commonly used for?

Saving accounts are usually used to save for rainy days or goals such as a deposit on a house. It can also be used to build up and achieve towards your life goals like wedding, holidays, children or retirement.

Disadvantages of saving accounts

The disadvantage of saving accounts is that you may not choose the most suitable one for your needs as there are many options available. Another disadvantage is that depending on the saving account you may be charged a penalty fee for withdrawing money before a specific time, such as Fixed-term bonds.

What is Cryptocurrency?

Cryptocurrency is a digital or virtual currency; this currency is protected by cryptography, which makes it extremely difficult to counterfeit or double spend. Cryptocurrencies are also systems that enable safe online payments designated in virtual tokens. Perhaps one of the features that sets cryptocurrencies apart the most is that they are not typically issued by a central authority, making them impervious to interference or control from the government. Blockchains are structural methods for ensuring the reliability of transactional data and are an essential element of many cryptocurrencies.

What are the advantages of Cryptocurrency?

Cryptocurrencies have had some controversy however, such as their use for illicit activities, exchange rate instability, susceptibilities of the infrastructure underlying them. Though, they have also been commemorated because of their convenience, inflation endurance and transparency.

Bullion (Gold) and what path do beginners make when investing in gold?

Individuals who are new to investing in gold usually begin by buying physical gold. Gold can be purchased in different forms, such as coins, ingots, and wafers. There is also bullion in vault investments options available in market. With bullion it’s a highly volatile market so it should be carefully evaluated before incorporating in your saving journey.

Are there any risks to investing in physical gold?

Even during challenging times, investing in gold is seen as a secure investment; however, there is no assurance that it will rise in value. It is essential to be aware that the acquisition of physical gold is unregulated.

Allocated and unallocated gold, what are the differences?

The most significant difference between unallocated and allocated is the ownership of gold and who is accountable for the security and insurance of the gold. If you purchase gold on an allocated basis, you are the legal owner. And it’s your responsibility to keep the gold safe.

However, when purchasing gold on an unallocated account from a bank or third party, they maintain legitimate ownership of the gold. Instead of owning the gold by buying it, you have deposited money to the bank. As a result, the bank repays your investment; however, on the bright side, it is the bank’s responsibility to secure the gold and the applicable insurance. Before making this type of investment, it is essential to consider that if a bank goes into liquidation, it would not be safeguarded under the Financial Services Compensation Scheme (FSCS).

What are stocks and shares ISA?

Stocks are diversions of ownership in the business, which can also be defined as shares of stock or equities. Investors who buy a share of stock buy a partial derivative ownership share in a company, allowing you access to some benefits.

What are the advantages of stocks and shares ISA?

There is a list of companies listed on the stock exchange, and investors will purchase and sell its shares. The London stock exchange is the main one in the UK; here, you have access to many companies such as Marks & Spence. And if you are looking for smaller developing companies, there is also an Alternative Investment market that lists these companies. Another benefit of investing in stocks and shares is that if a company is successful, you will have a part in reaping the company’s awards.

What are the disadvantages of stocks and shares ISA?

Disadvantages are that if you have shares in one company, it can be high risk, so having more than one investment in different companies may prove more fruitful as if one company gets into difficulty, you still have the option of your other assets. Another disadvantage is that a company could decide not to pay dividends, similar to interest for saving accounts. Furthermore, shares could also reduce in value.

What is Property Crowdfunding?

Property crowdfunding is a property investment that gathers the funds of numerous investors and puts them together to buy property or lend to developers as loans or to fund property developments. Generally, investors give a small contribution to the total cost.

What are the benefits of Crowdfunding?

Property crowdfunding can be advantageous for lots of reasons; as it’s a quick way of getting a substantial amount of money, this is also beneficial because investors can contribute smaller amounts while having access to deals that would not usually have access to.

How are returns distributed?

Once bought, returns are equitably shared among individual investors. Property equity investments are generally rental income and capital gains generated by rises in the underlying value of the property. Although for property-backed loan investment, this would be interest on lent money.

There are a number of options to choose from as described above, however Saving accounts are an efficient way of increasing funds and should not be seen as an outdated option, as they can be risk proof depending on what options you choose. Saving accounts are also the most reliable option for goals as you are responsible for transferring the money every month. Whereas many of the other options involve you, the investor to rely on other parties to make a profit, such as a company to be successful such as the Stocks and shares option, which could increase the risk of losing the money invested initially. It is also crucial to teach the value of saving to younger generations as saving when done consistently, can help reach saving goals and help if the financial outlook turns grim through loss of employment and decreased income.