Benefits Of Having A Savings Account

By Sanesh Mathew | April 3, 2019

A Savings Account offers a multitude of benefits that could help bolster your finances. Read on to know all about it.

Benefits Of Having A Savings Account

To open a Savings Account, or not to? That’s the question!

In this day and age, when everyone is focused solely on growing their wealth, a Savings Account enjoys little to no attention. The prime reason being the fact that you don’t earn much interest with a Savings Account, as compared to options such as Fixed Deposits, liquid funds, and equities.

Although the interest rate offered by a Savings Account is lower than other investment options, it does offer a multitude of benefits that could help bolster your finances. Didn’t know this? Well, allow us to explain.

It’s convenient

Opening and maintaining a Savings Account is easy. You can easily open an account either by visiting the bank or logging onto their website. You can keep a track of your balance and spends too by logging into your netbanking account. A Savings Account is also the best option for young earners to inculcate the habit of saving money, thanks to the convenience it offers.

In addition to the above, you also get the freedom to make payments or receive them, transfer funds to other accounts any time, or withdraw money easily via an ATM whenever you’re in need. Also, you’ll be provided with a Debit Card when you open a Savings Account.

Additional Reading: What Is A Minimum Balance Savings Account?

Your money is safe

With a Savings Account, you do not have to worry about market volatilities. Although you may get higher returns from your investments in stocks, equities and the such than you’d get from a Savings Account, there are risks associated with the former investment options. Such risks may lead to withdrawal of funds at a lower return percentage or even losses. However, with a Savings Account, your money is completely safe – no risks attached.

Auto-debit for payments

Got Credit Cards and loans? You can set up the auto-debit facility with your Savings Account and never have to worry about making your payments within time or missing payments. Once auto-debit is set up, the money will be automatically debited from your account on the date specified. How convenient, right?

You can also use this facility to make other recurring payments such as utility bills, mobile postpaid bills and even transferring rent to your landlord’s account. Isn’t life simple when you can make all your payments directly from just one account?

It acts as an emergency fund

You never know when you’ll come face-to-face with an emergency – be it loss of your job, a medical issue, car problems or financial issues in the family. Maintaining a Savings Account can come in handy when you’re faced with such unexpected monetary crises. The liquidity feature of a Savings Account lets you access your money anytime, anywhere.

Things you can get with your Savings Account

It’s not guaranteed that you will get all these with your Savings Account, but these are some of the common things that most banks offer their Savings Account holders.

– Cheque books

– International Debit Card

– Access to net banking and phone banking

– ATM cash withdrawal, even from ATMs of other banks

– Special value-added services such as promotional offers, insurance, discounts on other products sold by the bank, additional facilities to family members, etc.

Additional Reading: Do You Know The Difference Between A Current And Savings Account?

A Savings Account is the best option to keep your money safe. It serves as a great avenue to store funds for emergencies too. Plus, you can earn interest up to 7%, depending on the bank in which you hold the Savings Account. Interested in opening one? Check out your options by clicking the link below.

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