What are the Big Benefits of Owning a Savings Account?

The first step towards growing your wealth is opening a savings account. It is a reliable and long-term money management tool, which can help you to take care of many financial emergencies. Also, the best banks are eager to help you, when you apply for a savings account.

Along with high-interest rates and online money management, here’s what a savings account can do for you.

1.    Safe Money Keeping

If you have a high quantity of cash in hand, don’t let it lie around at your home or office. Rather deposit it in a savings account, where it will earn interest. The best savings account will provide you the highest interest rates on your funds.

2.    Free Personal Accident Insurance Cover

The best bank for savings account will offer you plenty of extra and useful benefits like a personal accident insurance cover.

Other facilities may include:

  • Online banking
  • Free and unlimited ATM transactions
  • Cashbacks
  • Higher purchase limits

3.    Savings Account is Low Risk

If you are conservative when it comes to money, savings accounts are suitable for you. They are not impacted by market volatility. This means you don’t have the risk of losing money. This is the best way to park the funds, which you need in the future.

4.    Make Online Payments

From utility bills to house taxes, everything can be paid online today through your savings account. You don’t need to stand in long queues with cash anywhere. All your credit card bills can also be paid through your savings account.

5.    Assured Liquidity

You can access your money anytime, from anywhere. There is no minimum lock-in period. This ensures that you can withdraw money whenever you need it. Just slip in the debit card at the nearby ATM and press on a few buttons.

6.    Financial Independence

Savings accounts offer financial freedom to elderly people, people from rural backgrounds, grassroots level entrepreneurs, domestic workers, housewives, and many other people from diverse backgrounds. It empowers people to take charge of their money and think about ways to grow it. Through a passbook, they can remain aware of how much money they have and where they spent it.

7.    Proof of Identity

Various government institutions consider savings bank passbooks as proof of identity. This is because the best banks in India diligently follow KYC protocols for savings account opening.

8.    Owning Debit/Credit Cards

When you open a savings account, you will be offered a debit card to access your money. Debit cards come loaded with plenty of other benefits in merchant transactions. Often banks have tie-ups with retailers and brands to offer you attractive discounts and cashback on using the debit card. If you have a good credit score, you might also be eligible for a credit card.

9.    Higher Interest Rates

Last but not the least, savings accounts accumulate interest. This helps grow your money for future use. However, this is possible when you choose a bank with the highest interest rates on a savings account.

All money management activities start with opening a savings account. Make sure you choose the right one.