Every year on October 31, World Savings Day is celebrated worldwide. Its main goal is to improve financial literacy, develop a culture of financial planning, and promote savings, drawing public attention to the important role of savings in improving the quality of life and stimulating deposits in financial and credit institutions.
The importance of savings and deposits
Deposits and savings are more than just money kept in a bank. They symbolize responsibility, foresight, financial stability, and an investment in one’s own well-being and the future of generations.
In modern conditions, saving or accumulation helps each person for the following purposes:
– Developing a savings habit. Saving promotes financial discipline and responsibility, helps you better manage your personal budget, and helps you avoid unnecessary borrowing.
– Creating a financial safety net. Having a reserve fund helps cover unexpected expenses, such as medical emergencies, job loss, and other unforeseen circumstances. Experts recommend maintaining a reserve equal to 3-6 months of family expenses.
– Achieving financial goals. Savings help you achieve life goals, such as buying or renovating a home, a car, children’s education, traveling, and more. Proper planning and saving help protect you from unnecessary debt and financial burdens.
– Investing in the future. Regularly setting aside free funds can be used to invest in securities (stocks, bonds, bills), real estate, and other reliable financial instruments, which contribute to capital growth.
The role of financial institutions in attracting savings
Banks and microfinance deposit institutions play a vital role in increasing savings, especially among previously unbanked populations. They encourage depositors by offering a wide range of deposit products, holding events, and disseminating information about their services.
At the macro level, savings contribute to economic development: the more the population places their funds in financial institutions, the more reserves banks have for lending to the economy (entrepreneurship, construction, infrastructure).
The Fund’s role in protecting depositors
The Deposit and Savings Insurance Fund of Tajikistan is a specialized institution of the financial system, created to protect the interests of depositors, strengthen public confidence in the banking system, and ensure its stability.
In accordance with the Law of the Republic of Tajikistan “On Insurance of Deposits and Savings”, depositors’ funds in credit institutions that are members of the Fund are subject to mandatory insurance.
Deposit insurance is completely free for depositors and does not require a separate agreement—all costs are covered by financial institutions and the Fund itself.
In the event of an insurance case occurring in a financial institution that is a member of the Fund, depositors have the legal right to receive insurance compensation for their deposits, and the Fund guarantees reimbursement of the insured amount within the limits established by law.
Financial literacy is the foundation of sustainability
Financial literacy and the ability to manage your money are key factors that help everyone achieve their goals and ensure their future financial well-being.
This year, the Deposit and Savings Insurance Fund of Tajikistan and its member financial institutions are holding a series of events dedicated to World Savings Day, including media and social network information campaigns, promotions and competitions, consultations, and other educational activities.
These events focus on deposits and savings, the importance of financial planning and personal financial management, the effective use of funds and the family budget, the advantages and features of deposit insurance, the process of insuring deposits of the Fund’s depositors, the powers and functions of the Fund, the level of insurance coverage, the amount of compensation, and other important issues.
World Savings Day is not only an opportunity to reflect on your finances but also a chance to gain knowledge and information that will help improve your financial situation. It’s important to remember that even small amounts saved regularly can yield significant results over time. As the saying goes, “Small steps lead to big goals.”
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