Savings Account: Here’s Why You Need One
Everyone must develop the habit of saving. Whether you are a working professional, housewife, student, or retired individual, keeping some amount safe for emergencies is important. Once you have developed the habit, you will experience better-organized and well-maintained personal finances.
One of the best ways to do this is by opening an online savings account. A savings account will give you a wide range of options for saving your money.
In this article, we will discuss all about savings accounts and their significance.
About Savings Account
Banks and post offices offer savings accounts that help you grow your money over time. The interest you earn can be a valuable source of supplemental income, not just for current needs, but also for long-term financial security, including retirement planning. By consistently saving and letting your money accumulate with interest, you can build a solid foundation for your future
A savings account is the most renowned and preferred bank account, and individuals are more inclined toward it.
Banks usually calculate and send the interest on this account half-yearly or quarterly. This type of account also has several other qualities that allow the account holder to make hassle-free transactions.
The best savings account often provides the following facilities:
· Debit card
· Passbook
· Internet banking
· Life insurance
· Motor insurance
You can also get the benefits of government schemes, which is why it is vital to open a savings account.
Different Types Of Savings Accounts
When it comes to the best savings account, it is crucial to choose the right one. Savings accounts are compartmentalized into sub-categories based on their different offerings and charges.
The following are the most popular savings account categories:
· Zero balance savings account
· Regular savings account
· Jan Dhan account
· Salary account
· Senior citizen savings account
· Women’s savings account
· Minor savings account
The expenses for these accounts vary according to the bank policies and savings account type you choose to open.
The Importance Of Savings Account
A savings account will benefit you in more than one way. If you don’t have a savings account, you can consider opening a savings account online to get the following benefits.
Secured Funds
The online savings account opening can be a safe hub for your funds. The money in the savings accounts will not go anywhere unless you withdraw it or make a payment through your account.
This type of account is liquid; therefore, you can withdraw your money up to a specific limit at any time during the month.
It is good for senior citizens and salaried individuals who want to withdraw their money for monthly expenditures and earn interest on the kept balance.
Value-Added Services
Most banks are now offering value-added services through savings accounts. Most banks also provide discounts on purchases or reward points, cash backs.
Moreover, some banks provide accident or medical insurance upon opening a bank account. You will be liable for these benefits with a savings account and get extra value.
Digital Banking Services
The Indian government is encouraging people to opt for digital payment, and since then, the demand for savings accounts has grown enormously.
You can easily enjoy online banking benefits such as NEFT, UPI, RTGS, and Internet banking. You can manage all payments and transactions without visiting your bank.
Government Schemes
Another reason to open the best savings account is the government schemes and subsidies provided.
The goal of the Indian government is to remove any middlemen. To do this, the government is pushing benefit transfers in schemes where you can access your benefits and government schemes only by having a savings account.
Most banks provide a zero-balance savings account with no obligation to maintain the minimum balance.
Financial Planning
You can easily plan your finances by having a savings account. By having a clear insight into the savings, you can apprehend your financial condition, allowing you to plan your investment. By easily opening an account through E-KYC (ई-केवाईसी क्या है)and gaining clear insight into your savings, you can understand your financial situation and plan your investments.”
You can also use the account to secure money while looking for the best scheme.
Conclusion
A savings account is essential since it can save you from debt. And if you have made up your mind and have decided to open a savings account, you should consider only the best type of savings account.
Remember to consider the amount of money you want to save since some banks require a minimum deposit when opening a savings account.
