Finance

Top reasons to open a Savings Account

Saving Account

Saving your hard-earned money strategically is imperative. But with no means in sight, you can find it challenging to do so. Considering this, banks and financial institutions offer various saving facilities. Of them, Savings Account is popular. 

A Savings Account is an interest-bearing Bank Account. It allows you to build wealth efficiently by helping you earn interest. While this is just one reason to opt for this facility, consider a few other top ones:

Facilitates online transactions

In this digital era, most transactions are carried out online. Having a Savings Account in such times is a wise idea. It lets you make online transactions and payments easily. Whether utility bills or shopping, you get to fulfil all your monetary needs effectively. Besides, you can even track your transactions through a Banking app. This enables you to keep a record of your day-to-day expenses. 

Interest income

The main reason why people choose the account is that they earn through interest rates. As you start depositing money, you enjoy interest earnings. Moreover, your bank might increase the rate if you maintain a good closing balance. 

Debit or Credit Card facility

Once you open the account, you get Credit/ Debit Card facilities. Now, you could use them to pay online vendors or to withdraw cash from an ATM. In any case, it comes in handy for managing the funds in your account. 

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Secure way 

A Savings Account is the most secure way to save. Since it is not a market-led investment channel, no risks are involved. Plus, it serves as an emergency fund outlet that assists you in times of crisis.

Easy to open

Opening a Saving Bank Account is relatively easy. The task becomes more manageable if you opt for the online opening process. You only need to fill out an application form and upload the following documents:

  • Proof of identity (Aadhaar Card/Voter ID/PAN Card)
  • Proof of address (Aadhaar Card/Telephone bill, Electricity bill)
  • Recent passport-sized photos

Encourages financial discipline

We all know of the significance of saving. But often, we find ourselves spending mindlessly. This is when your online Bank Account is useful. 

Since you need to maintain a minimum balance, you cannot go overboard with the spending. You do not get the chance to splurge unnecessarily. 

Helps with income tax returns

When you own a Savings Account, all your income gets credited into it. This makes it more manageable for you to calculate your gross annual income. You even get the option to pull out your bank statements as income proof when filing for an income tax return.

Tips before opening a Savings Account

  1. Analyse your lifestyle and financial goals
  2. Look for banks that offer attractive interest rates
  3. Inspect the deposit limits 
  4. Gain an understanding of the schedule of deposit charges
  5. Know the maximum amount for monthly withdrawals
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