What are the disadvantages of a savings account?

Other types of interest-earning accounts require you to take risks to earn returns. Fees: One of the disadvantages of savings accounts is that some financial institutions charge fees that can defray your earnings. For example, a monthly fee may be charged if your balance drops below the minimum balance requirement for the account.

Are savings accounts better than a savings account?

However, savings accounts come with both advantages and disadvantages. Here's a look at some savings account pros and cons, along with four alternatives that might be better than a savings account. Earn interest: One advantage to savings accounts is that they often pay interest on the money you deposit.

Do savings accounts accrue interest over time?

Savings accounts will usually accrue interest over time. Although interest rates have been extremely low since 2007, with many savings accounts having an interest rate below 1%, you will still accrue interest over time with an account. That means you have more earning potential with your money compared to keeping it in a safe at home. 2.