A Savings Account is one of the most popular bank accounts that a person can invest in. It is one account that can be used for many different purposes. In fact, there are several types of Savings Account that can be used for different requirements. For many people, this is their first interaction with the banking and financial system.
However, with a number of other investment sources becoming more attractive than a Savings Account, this account is losing its sheen. If you’re wondering about the importance of a Savings Account, here is a handy guide.
Here are 5 reasons why Savings Account is important:
- Safe avenue for funds:
A Savings Account is a safe avenue for funds. The funds kept in a Savings Account stay there unless they are withdrawn or paid out. That is the reason why a Savings Account commands such a low rate of interest. However, a Savings Account is liquid, in the sense, the customer can withdraw his money up to a particular limit at any point in time in a month. This works out to be very beneficial for salaried employees and senior citizens who can withdraw their monthly expenses and then earn interest on the other balance. Another point to be considered is that Savings Accounts are insured up to Rs. 1 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- Provides special value added services:
Many banks nowadays provide value added services and benefits with a Savings Account. Several banks offer discounts on purchases with merchants or cashback or reward points on the ATM cum debit card. Along with that, many banks provide some basic form of accident or medical insurance, foreign travel insurance, and other types of insurance covers for opening the bank account. By choosing an account that gives these benefits, you can get extra value. A Savings Account also offers passbook facility, net banking, cheque book facility.
- Place to collect funds and make payments:
A Savings Account is an excellent place to collect funds from different sources. There are no limits on cheques deposited or cheques issued or payments made from a Savings Account. This makes it hassle free to own and operate.
- Income generating account:
Unlike a current account, a savings bank earns interest. The balance earned in a Savings Account helps to improve the individual’s income. Some banks offer higher interest rates for maintaining a higher balance, while some offer sweep in facility which helps earn higher interest income.
- Can help plan your child’s financial future:
Get Online Saving Account Opening in secure and simple Video Kyc process of an HDFC Bank.
By opening a Kids Savings Account, you can help your child understand the basics of how to operate a bank account. These valuable financial lessons can help your child manage their finances and learn the value of money.
A Savings Account may seem simple and plain, but it is an essential part of many lives. Make sure you open a Savings Account today! Read more on how you can open your very own Savings Account online here!
Want to open an HDFC Bank Savings Account? Click here to get started!
In fact, there are several types of Savings Account that can be used for different requirements. For many people, this is their first interaction with the banking and financial system.
With HDFC Bank InstaAccount open a Savings Account instantly in a few simple steps. It comes pre-enabled with HDFC Bank NetBanking & MobileBanking and you can enjoy Cardless Cash withdrawals. Click here to get started!
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
