A Savings account is an account for people who want to save their money for future use and earn interest. It can be open with minimum or no initial deposits. This kind of account has a nominal rate of interest.
Choosing a bank account can be difficult for many people. Therefore, here are some reasons why you should open a savings account.
Keep your money safe
Nobody wants to get their money stolen away. Not everyone prefers to keep money in their lockers anymore. Therefore, a much better option to safeguard one’s money would be to keep it in a savings account.
It allows us to keep all the deposits in one place safely. Moreover, one can now save money and buy their dream car or their first house; or start a new business.
Easy to open
One might avoid opening a bank account due to its high requirements and piles of paperwork. However, opening a savings account has no such requirements; one just needs to be an adult to open one.
A savings account also offers a zero balance account which is ideal for students and people with low income. One can also open a kid’s savings account to teach their children financial management at an early age.
A savings account offers much more than keeping your money in one place. It allows one to opt for online banking services. These services can be used anywhere for online payments and online money transfers. This will help you save your time which can be used for other important tasks.
Apart from this, you are provided with an atm card which can be used to set up UPI payment options in various UPI payment service providers. Moreover, one gets attractive offers and cashback for using their savings accounts for payments.
Get free Insurance
One gets free insurance covers after opening a savings account. Besides offering insurance on your money, banks also provide you with life insurance, travel insurance, and sometimes even car insurance.
Providing Financial Stability
Money kept in your bank account will eventually generate a certain percentage of interest on it. This extra money added to your savings provides you with financial support in medical emergencies. Additionally, this will help you save money for your children’s education,
Moreover, a savings account provides you with ensured liquidity, where you can withdraw money without paying any additional charges. One finds it hard to find a good light company with no deposit.
Interest earned by a savings account can be an additional help in filling such deposits. Using a credit card for huge payments negatively affects your credit score, and a payment from a savings account will be a better option.
Investment is a good option to increase your capital. With inflation at its peak, everyone requires extra income. The extra money can be diverted towards investment for maximum returns. Shares and trading is an option that allows you extra money. But sometimes, people find themselves short of funds to invest.