Whether you are a retired individual, a student, or a salaried professional, you need to save money as frequently as you can. Once you get accustomed to it, your finances will be more organised. The next and most crucial step is to open a Savings Account to stick to this saving habit. Having a Bank Account can also be crucial for your financial stability and independence goals. Let us understand a Savings Account and explore why it is essential.
About Savings Accounts
This Bank Account is usually the most basic account you open at a bank. It lets you deposit your funds securely with your preferred bank, keeping you from hiding them at home or carrying them around with you. Besides, such an account usually lets you withdraw the funds whenever you need them. A Savings Account also lets you earn interest at a particular rate on the deposited amount.
Reasons why a Savings Account is crucial
The several advantages offered by a Savings Account include:
- Helps grow your money
Most banks let you earn interest when you deposit money into your Savings Account. However, you can also invest the funds in other investment options within the same bank. For example, you can opt for a Fixed or Recurring Deposit or invest in Mutual Funds. Having a Bank Account usually makes it easier to transfer money to your choice of investment whenever needed.
- Keep track
Cash transactions are typically difficult to track. Consequently, you often end up wondering where you spent the money. However, making purchases using your Savings Account means you need to have a record of the transactions and can pull them up whenever required. This lets you understand your patterns in spending so you can decide to spend less on specific categories of expenses
- Acts as a safe avenue for your funds
A Savings Account acts as a secure avenue for your money. The funds you store in this account stay there until they are paid out or withdrawn. Such an account also safeguards your money from your uncontrolled spending urges. Today, you can choose from various Savings Accounts when opening one. For example, you can open a Regular Savings Account, a Senior Citizens’ Savings Account, a Women’s Savings Account, etc.
You can also take advantage of opening an online Savings Account with zero balance. A Zero-Balance Savings Account generally lets you deposit and withdraw funds as you wish without the hassle of maintaining a minimum balance.
- Benefit from government schemes
You need a Savings Account to be eligible for government schemes and subsidies.
Conclusion
Now that you know about Savings Account and its various perks, you can browse the different accounts provided by your chosen bank and pick the one that matches your requirements.
