We have all opened Savings Accounts and are probably familiar with the term and its uses in a broad sense. While operating them, we may not have paid attention to the various benefits of this simple banking product.
There are many features of a Bank Account that we may not use to our advantage, yet each one of us has one or more accounts in different banks in India. Here is a list highlighting all of them:
Lifeline of all transactions
Savings Accounts are the bare minimum you need to transact conveniently. Cash transactions, especially of higher volumes, may become cumbersome and risky. There is also no legal record if cash exchanges hands. The e-commerce world relies on digital payments, primarily conducted through Bank Accounts. These are necessary for any investment, including Loans.
Provides nominal interest
When you open a Savings Account, the bank sets a minimum balance requirement for liquidity purposes. However, many innovative and competitive products offer decent interest rates, often higher than Bank Accounts. You receive the compounded interest monthly, quarterly, or annually, making it an attractive investment option.
Minimum average balance
Savings Accounts hold a minimum average balance of Rs. 10,000 to Rs. 25,000. If you do not maintain it, banks charge the customer a certain percentage as a penalty. Before proceeding, you should read the terms and conditions on the account opening form and bank documents.
Add-on facilities
Besides the usual passbook, chequebook, and Debit Card facility, banks offer Demat Accounts alongside an online Bank Account. You can use them conveniently for Equity and Debt investments. Other banks also provide locker facilities for the safekeeping of documents, gold, and other precious items.
Accessible for all
Savings Accounts have eligibility criteria that everyone can qualify for since they are the lifeline of the financial system. However, most banks painstakingly design their products to align with the requirement of the set of audiences that they want to cater to.
How to open it?
To open an account, download the Banking app, check the eligibility, submit the required documents, pay the minimum deposit amount, and operate it from anywhere. Your account gets activated after thorough verification by the bank executives.
Importance
Bank Accounts have become more relevant after digitalisation. They are the primary reason for achieving cashless and contactless transactions. You can open different accounts, including senior citizen, women’s, and children’s accounts, through Personal Banking and streamline your finances.
Conclusion
There are minor yet meaningful variations in Savings Accounts, which could increase your delight factor. Thus, it becomes essential to spend time, open one that aligns with your needs, and provide facilities that add to your experience.
