Owning a Savings Account is the first step in the banking journey for many people. It is the first formal relationship you build with any financial institute. Moreover, you should have access to a Bank Account if you want to invest in Mutual Funds, apply for a Home or Personal Loan, etc.
What is it?
A Savings Account is the primary account you open with a bank. It lets you save and deposit money for safekeeping. This keeps you from the problems of storing cash at home or in the office. A Savings Account is the most liquid investment. As a result, you can easily access and withdraw the money in this account whenever you need it. You can also do so from anywhere and at any time.
Today, opening such an account is alsorelatively easy. You can conveniently open one with your chosen bank by downloading their Banking app and following the necessary steps. The process is seamless, and you can do itanytime. Once you complete the necessary formalities, the bank sends your account details to your registered email address.
Consequently, you can then use the same to access your account online to deposit funds and carry out transactions until your welcome kit reaches your address.
Advantages
The other benefits of opening a Savings Account include the following:
Allows safekeeping of funds
When you open Bank Account online at a reputed bank and deposit funds, you can be assured and at peace that your hardearned money is safe and secure.
Ensures more savings
Tracking your money is tricky when you have idle cash at home. This, in turn, may lead to increased spending, thereby reducing your chances of saving. However, with a Savings Account, you can track and use all your funds more carefully.Opening a Bank Account also lets you open a Fixed or Recurring Deposit. This allows you to save and deposit money for your financial goals and earn interest on the sumat a fixed rate over time.
Allows growth of money
Depositing money in your Savings Account enables you to earn interest on the funds at attractive Savings Account interest rates. Hence, it helps grow your money slowly and steadily in the long run.
First step to getting credit
When you maintain a good balance in your account every month, your bank may let you avail of a Loan or Credit Card.
Allows transactions
Typically, a Savings Bank Account comes with a Debit Card letting you carry out online and offline transactions. You can also link your account with a UPI service or e-wallet to transfer funds to other accounts. Besides this, you can use your bank’sOnline Bankingplatforms to conduct various transactions.