Everyone has heard about savings account and many even have multiple savings account. In the current scenario, where life is completely unpredictable, a savings account is a must for everyone. A person with responsibilities would always want to save money for future expenses and possible financial emergencies.
A savings account is not just a place where your money is kept, it’s a place where your money keeps on multiplying gradually with time. So, why not park money in a savings account? Unlike the current account and other types of options, a savings account is very less complicated and is easy to operate. A savings account is like a stepping ladder that allows you to gain more knowledge about financial services that can be beneficial for you.
Here are some of the benefits of having money in a savings account:
Liquid option: Savings account is the most liquid option available to individuals. You can deposit and withdraw money at any time of the day. Banks also offer a number of options such as debit card, cardless cash withdrawal, UPI, netbanking and mobile banking to carry out transactions easily.
Emergencies can happen at any time. And, money may be instantly required for a lot of emergency cases such as road accidents or sudden hospitalisation. Hence, it is important to have money in your savings account. Stacking away your entire savings in a fixed deposit isn’t a great idea as well as the funds may not be instantly available to you or you may have to pay a penalty for early withdrawal.
The auto sweep facility is a better option. By opting this facility, banks automatically create Fixed Deposit when the balance of your savings account crosses a particular threshold. It is extremely liquid as funds from these FDs can be used to maintain the minimum average balance requirement and for other cash requirements. It is an automatic feature and customers can earn higher interest rate than savings account.
Earn interest:Every savings account offer an annual interest to their customers on their deposits. The interst is calculated on the balance available in the account at the end of the day and is credited on a quarterly basis. So, if you have money in your savings account, you will gain interest on your deposits.
Save your money from yourself: When it comes to handling money, we are not the best managers of our money. We take irrational decisions and end up doing things that are detrimental for our financial health. Hence, it is important to save our money from ourselves.
Now, if you choose to keep all your savings at your home instead of a savings account, your money isn’t safe nor it is earning any interest. Ofcourse, cash is still a very liquid option but there could be a high chance of spending all your money that could have otherwise remained safely in your bank account.
Avail other banking facilities: When you keep money in your savings account, you can eaily avail different options that can help you to make the best use of your money. For example, if you are able to consistently maintain a certain sum of money in your account, you can open a Recurring Deposit (RD) and earn interest rate than savings account. You can also invest in different investment options such as mutual funds or equities. These saving and investment options can help you fulfil your financial goals and lead a fulfilling life.
There is no question about the fact that the savings account is the most important type of bank account and it keeps your money safe. However, you have to keep money in your savings account to get the best use out of your savings account.
Open Zero Balance Savings Account and take the various benefits of a savings account with no minimum balance commitment.