Savings Accounts are the most popular banking product that you can open today. They are multi-purpose accounts that can help you collect and save for future emergencies and urgent payments. You can find different bank accounts that cater to different individuals.
Before finalising the bank, check the Savings Account interest rates, features, and benefits. It provides a clear idea of which scheme is affordable and reasonable according to your financial requirements. Here are other reasons why it is important:
Safe avenue for funds
The funds stay there unless they are withdrawn or paid out. Most of them command a low interest. You can withdraw your money up to a particular limit at any point in time in a month. Moreover, you get regular updates about credits and debits on your registered email address and mobile number. Apps also allow you to check your digital passbook while on the go.
Value-added services
Several banks nowadays offer value-added services with a Savings Account. They offer discounts on purchases with merchants, cashback, or reward points on the ATM cum Debit Card. They also provide Medical Insurance, foreign Travel Insurance, and other covers for opening the account, along with a passbook and chequebook facility.
Collecting and paying funds
Bank Accounts are an ideal place to collect funds from varied sources. You can issue and deposit as many cheques as desired and make payments to multiple people. This account is hassle-free to own and operate for new account holders as well as senior citizens. You can open it with minimal documentation and enjoy the services instantly.
Income-generating account
Nowadays, banks also offer a high interest on Saving Account where the balance earned helps you improve your income. Some of them also offer a sweep-in facility, which uses the idle amount in your account to generate better value. You can also get your salary credited to it and increase the balance to earn higher interest income.
Planning children’s future
By opening an account, you can help your child understand the basics of operating it. These financial lessons can help your child manage their finances better and learn the value of money. Having a safe avenue for funds is an essential part of many lives. You can also open accounts especially designed for children’s needs through the Banking app.
Calculating interest
The Bank Saving Account interest rate gets calculated daily. You can use the interest calculator to check and compare different schemes offered by banks. Here is the formula to calculate the interest:
Interest = Daily balance x Rate of interest x (No. of days/365)
Conclusion
Banks have adopted digital methods to reach their customers, thus reducing their travel and saving their time. Invest your funds in diverse traditional and market-linked schemes to earn decent returns and fulfil your ambitions.
