When you earn money with all your hard work, you aim to use it carefully and responsibly without exhausting it. You have many plans to accomplish in the future, like further education, securing a job, marriage, having a family, etc. The expenses keep piling up each year, thanks to inflation. Therefore, saving money today is the best solution for a brighter tomorrow.
A Savings Account is one of the most popular financial products for investment. You can utilise the funds for multiple purposes. For most of the population, it is their first interaction with the banking and financial system. This traditional and trustworthy account remains essential with the rise of other investments. Here are some reasons:
Provides value-added services
Banks offer value-added services and benefits to their customers, like discounts on purchases, cashback, and reward points on the ATM or Debit Card. Besides, they also provide basic Insurance for opening the account. You get extra value for your savings with a passbook, chequebook, and Net Banking facilities.
Safe avenue for funds
An online Bank Account is a safe avenue for funds. They earn interest until withdrawal or payout. The account is liquid, enabling you to withdraw money up to a particular limit at any time in a month. It benefits salaried employees and senior citizens who can withdraw their expenses and earn interest on the balance.
Collect funds and make payments
A Bank Account is an excellent place to collect funds from different sources. There are no limits on cheques deposited, issued, or payments made. These features make it hassle-free to own and operate. You can build a retirement or emergency corpus using Digital Banking and pay for expenses digitally from your smartphone.
Income generation
Unlike Current Accounts, a Saving Bank Account earns interest. The balance earned on it improves your income. Some banks offer a higher interest for higher balance maintenance, while others provide sweep-in facilities which enable you to earn higher interest income. The rates remain fixed and pre-decided without getting affected by market fluctuations.
Plan children’s future
By opening a Bank Account for your child, you can help them understand how to operate it, encouraging them to manage their finances and learn the value of money. They can start saving early and become calculative citizens after becoming adults. Ultimately, their savings increase in the account, thanks to interest collection.
Opening a Bank Account has become stress-free and paperless thanks to the Banking app. You have the liberty to open any type of account available if you are eligible for it. There are various accounts for women, children, and senior citizens. Check the eligibility, interest rates, documents required, and online access facility before selecting the bank.
Conclusion
Many banks are providing flexible and convenient account opening methods to customers. They are striving to meet the demands of the next generation by offering online access, including the Internet, Mobile, and Phone Banking.
