5 Reasons To Open A Savings Account

by | Sep 27, 2021 | 0 comments

By Author: Anujit Bhattachaarya

Banks are a boon to the country as they allow you to keep your savings securely. You can accumulate funds and use them whenever there is an urgent requirement. You need money to fulfil your desires and achieve your goals. Besides, it should be safe and help you meet your requirements.

Savings Account is one of the popular financial products for investment. You use it for multiple purposes and requirements. For many people, it is their first interaction with the banking and financial system. It also helps you invest in other instruments, apply for loans, and use emergency corpus. Following are the reasons you need to open one:

Safe avenue for funds
The funds kept in a Bank Account stay safe unless withdrawn. Hence, they have low-interest rates. You can withdraw the money up to a specific limit monthly. It is beneficial for salaried employees and senior citizens to become financially independent and earn interest on the account balance.

Value-added services

Many banks nowadays provide value-added services and benefits with an online open Saving Account. They offer discounts on purchases with merchants or cashback or reward points on the ATM and Debit Card. Besides, you also get accident or Medical Insurance, International Travel Insurance, and other types of covers for opening a Bank Account. You also get a welcome kit with a passbook facility, net banking, and chequebook facility.

Fund collection
They are an excellent place to collect funds from different sources. There are no limits on cheques deposited or issued or payments made from the account, thus making it hassle-free to own and operate.

Income generation
Unlike a Current Account, a Savings Bank Account earns interest. The balance earned in it helps to improve your income. Some banks offer higher interest rates to maintain a higher balance, while others provide a sweep-in facility, which helps earn higher interest income.

Financial planning
By opening a Savings Account, you can help your child understand the basics of how to operate it. These valuable financial lessons help your child manage their finances and value money. It is a simple but essential part of many lives.

Online account opening
Nowadays, you can open an account online. Initiate the process with just your mobile number, documents, and online application form. You avoid bank visits altogether, save time, and the hassle of excessive paperwork. The documents required include Driving License, Passport and the latest passport-sized photographs.
The bank verifies your details and delivers the Debit Card to your doorstep. You can also visit the branch for physical verification. Once you receive the Customer ID and account number, you can transfer money and use your account.

Conclusion
Keep track of your funds. Never share confidential information like passwords, PINs, or OTPs with strangers, as it gives them complete control of your account.

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