Savings accounts are the most common kind of bank account. Almost all Indians have a saving in one or another bank. This kind of bank account is a deposit account where you can save your money for a modest interest rate. The account holder can withdraw the deposited amount at any time. A savings account is the safest way to save your hard-earned money.
A savings account gives you numerous benefits. Let’s see, how a savings account can help you to strengthen your finances.
Benefits of Savings Account
Creates an Emergency Corpus
Savings accounts act as emergency fund during the unexpected monetary crises. Whether it may be a broken major appliance, your automobile repair or medical emergency. The liquidity of a savings account makes you withdraw the required fund at any given time. The amount in a savings account is always available to cover the unexpected expenses and keep you free from debts.
The asset you keep in your savings account is free from any impact that is created to your investments by market volatilities. For instance, if you invest your hard earned money in real estate, bonds, and stocks, there are chances of getting a much higher return on your investment as compared to the savings account. But at the same time, the chances of getting hit by unforeseen circumstance where you are to withdraw your investment for a lower return or a loss is also present. Keeping your money in a savings account will save from the loss that you need to face via forced withdrawal of investments.
International Debit Card
Having a savings account in India will give you an opportunity to convert your saving account debit card to an international debit card. You can upgrade your existing national debit card to international debit card to use in overseas.
Easy Bill Payments
A savings account gives you the freedom to pay off all your bills directly from the account. One can use savings account for paying credit card bills, utility bills, mobile & DTH recharge etc. easily.
Easy to Open and Operate the Account
It is very easy to operate a savings account. One can easily open a savings account by visiting the bank branch. Many banks even give the option to open a savings account online by logging into the website of the bank. Saving accounts are beneficial for young people who are to start saving or wants to learn bank how a bank works.
Can be Started with Very Little Money
Savings account can be started with very little money. One can start a savings account with as little as Rs.500. Till a few days back, banks use to keep a ‘minimum account balance’ for a savings account which has been recently waived off by most of the banks. It allows the consumers to keep any amount of money in the account without a cap.
Easier Loan Repayment
Most of the modern professionals own one or more loans. The loan repayment becomes super easy if you have a savings account. Lender comes up with a repayment process which is called ‘auto debit’ process. In this method of loan repayment, the lender debits a prefixed amount of money from the savings account of the borrower. A savings account gives lets you enjoy this facility. What the borrower has to do is maintaining a sufficient amount in the bank account.
A savings account is one of the easiest and safest ways to safeguard your hard earned money. A savings account not only keeps your assets safe, but it also gives you interest at the rate of 6% to 7%. A savings account can help you to get a locker facility too. The withdrawal of the money can be done from any corner of the world via debit cards. A savings account can be liked with any kind of wallets and online accounts which keep the hassles of carrying cash away. Taking all the aspects together, we can say that a savings account is a must have to manage your finances in a better way.