Why is a Savings Account Important?

Why is a Savings Account Important?

It’s no secret that a savings account is one of India's most commonly opened bank accounts. Millions of Indians have at least one, if not more. People open this type of account to maintain liquidity and perform transactions seamlessly while earning a modest interest rate.

Importance of a Savings Account

It's safe to say that such a bank account comes with a host of benefits to help you bolster your finances. Some of them are listed below:

Can be Started with Little Funds

If you wish to open a savings bank account with a nominal deposit, you can! There was a time when certain banks used to ask for a minimum balance, but most of them have waived off this clause. So, why not keep a savings bank account ready in case you need one in the near future? Or better yet, you can open one with just 500, in case your bank does not extend the zero-balance feature.

Easy to Open

It is effortless to open a savings bank account. Earlier you could open this account only by visiting a branch, but today renowned banks let you open a savings account online. All you have to do is log on to their website and follow the carefully listed instructions. Even a minor (above 10 years and under 18 years of age) can open a savings bank account in India.

Acts as an Emergency Corpus

If you run into an unexpected monetary crisis, a savings bank account can bail you out. Since there is no lock-in period for this type of account, you have the money available to you at all times for sudden expenses. You have total monetary liquidity with a modest interest rate the minute you open a savings bank account.

Shields You from Market Volatilities

Your hard-earned money remains unaffected by market volatilities – shares, stocks, etc. Sure, investing in futures and bonds offer a chance to earn a higher rate of return. But, you also stand to make losses if the market takes a turn for the worse, which is not uncommon. Therefore, it is always advised to safe keep at least a portion of your hard-earned money in a savings account.

Provides International Debit/ Shopping Card

Opening a savings bank account in India mostly comes with an international debit card at no additional cost. You can swipe this card when abroad, and usually, only the currency conversion rates apply. Such a feature is a boon as you no more have to carry traveller’s cheques or substantial cash when leaving the country. If you have a national debit card, request your bank to convert it into an international one. If you have a savings account with them, they will most likely do so without any hassles.

Offers Convenience of Bill Payments

With a debit card, bill payments and shopping experiences are seamless. Just punch in the numbers online or swipe or tap your card at POS (point-of-sale), and you are done. Also, if you though that reward points could be earned only by swiping your credit card, you are wrong. Today banks offer their savings account holders debit cards that earn them equally substantial reward points on bill payments.

In the End

Undoubtedly, a savings bank account is one of the most secure ways to stay liquid, earn modest interest and safeguard your money. If you want to open a savings account online, make sure you are hands-on with your research, as certain banks, such as IndusInd Bank,are offering up to 6% ROI these days.