Being financially prepared requires more effort than smart budgeting. The most effective way of establishing a robust financial base is through a savings account. It facilitates ease of transaction and helps you save money in an organised manner. Here is a closer look at the benefits and features of savings accounts.
What is a Savings Account?
A savings account is a financial product that allows you to put money in a bank account safely, where you can earn interest on the account. It promotes financial discipline and also allows the short and long-term objectives to be achieved with ease. The purpose of these accounts is to encourage you to set aside savings and everyday expenditure.
Benefits of Savings Accounts
Apart from providing a platform to deposit money, savings accounts have a range of benefits. Some of them are as follows:
1. Encourages Financial Discipline
Today, most savings accounts offer a digital dashboard to have an overview of the current balance. Through saving a percentage of your income, you can create a substantial financial buffer over time. You can also invest in securities such as mutual funds through savings accounts of leading banks. However, investing in stocks and mutual funds requires having a demat account.
2. Monthly Interest Payouts
Many banks offer a monthly interest payout on savings accounts. A monthly payout helps in compounding interest faster, which gradually enhances the growth of savings. Moreover, savings account interest rates usually increase as you deposit more money to it.
3. Auto-Upgrade Feature
Banks commonly offer an auto-upgrade feature, which automatically upgrades the account holder’s Savings Account after a certain period. These upgrades come with additional privileges and benefits such as higher withdrawal limits and preferential rates on loans. This feature rewards long-term customers and encourages them to maintain higher balance in your savings account.
4. Multiple Payment Facilities
The Savings accounts have various payment options, including NetBanking, UPI, NEFT, RTGS and IMPS to transfer money and also to shop online. These facilities ensure that account holders can control financial transactions in an easy and effective way.
5. Joint Account Accessibility
Joint accounts options are another valuable feature of savings accounts. These features allow the sharing of one savings account by two or more account holders, like spouses or business partners. This structure supports collective savings and also makes financial management easier, facilitating transparency and easy management of finances.
To begin enjoying these benefits, you simply need to apply for savings account with your bank and start growing your savings today!
Features of Savings Accounts
Banks often include digital savings accounts as their initial offering for managing finances easily. Some of its common features include:
- Access to a Feature-rich Debit Card: You can get a complementary Debit Card along with purchase protection and exciting offers across leading brands in India.
- Digital Banking: You can get 24/7 access to your funds via mobile app and net banking. Apart from these, you can even recharge your mobile and apply for a host of products and services.
- Tap & Go: The contactless Debit Card allows you to make transactions up to ₹5,000 approx at merchants that offer tap and pay facilities.
*The mentioned features are common among bank accounts. However, the exact availability of services may vary depending on your location and the type of savings account you choose.
Conclusion
Savings accounts can assist you in developing financial discipline, earning interest, and spending your money more effectively. With features like digital access, joint accounts and multiple payment options, it supports your financial goals and simplifies day-to-day transactions. It also gets you a feature-rich debit card and tap & go payment feature across merchants.