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A savings account is one of the first steps into a financial journey. When you open your account you not only seek to avail banking services but also want to earn returns on your deposits. That is why it is important to choose the right savings account so that you can avail all the services as per your requirements.
Safety of money is another major reason why people prefer to have at least one savings account for all family members. It is easy to open a savings account. Firstly, you fill up an application form and the bank will evaluate your KYC. Once your account is opened, you will get an account number, a bank passbook, and a debit card. There are various services such as withdrawing cash, getting a chequebook issued, and numerous other products which come with a savings account.
Easy access to your money as and when required is one of the key features of a savings account. You can keep your money in a savings account to handle emergencies. Often people store their contingency fund in a savings account as it is easier to withdraw your money.
Let’s look at some of the advantages of a savings account.
Your Money Is Safe
A savings account makes sure safety and gives interest on deposit. So, the main purpose of opening a savings account is to keep your money safe and earn interest. Keeping money at home is not only unsafe but may also lose value.
Also Read: When taking a personal loan is a bad idea
Easy Availability
You have easy access to your money whenever you want. It is a liquid investment that you can convert to cash. Many banks lure customers who have good income to have a bank account with them. They also offer discounts and freebies to new customers.
One Account, Multiple Facilities
Without paying extra charges for most of the services, you can enjoy your money. Things you get after opening an account is a passbook, chequebook, passwords to your banking services, mobile banking, and many other facilities. Senior citizens are offered home banking services as well without any additional charges by some banks.
Emergency Funds
We all know that having an emergency fund for at least six months to 12 months is important to handle emergencies. A savings account is one of the best way to store your emergency funds and earn some interest as well. It gives you 24×7 access to your money.
Here are some public and private banks offering higher interest rates on a savings account. Compare their services and rates before going for it.
INTEREST ON SAVINGS ACCOUNT
Data as on respective banks’ website on 10 Jan 2023
Interest rate on Savings Account for all listed (BSE) Public & Pvt Banks, and Foreign Banks considered for data compilation; Banks for which data is not available on their website are not considered. Minimum balance requirement for regular savings account and excluding BSBD account. **AMRV: Average monthly relationship value requirement; AQB: Average Quarterly Balance; AMB: Average Monthly Balance; MAB: Monthly Average Balance; QAB: Quarterly Average Balance; MMB: Monthly Minimum Balance; MB: Minimum Balance; ^Youth Plus Account
Compiled by BankBazaar.com
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