In the ever-evolving landscape of personal finance, one financial tool that has stood the test of time is the Savings Account. Here is the significance of adding this account to your financial mix, exploring what it is and unveiling its numerous benefits.
About Savings Accounts
When you open a Savings Account with a bank, you get access to a financial instrument that lets you save and deposit money securely. You can access the money whenever required. It also allows you to earn a modest interest on funds you deposit. A Savings Account is usually preferred for its safety, reliability, ease of use, and liquidity.
Reasons to open an account
When you add a Savings Account to your financial plan, you enjoy the following advantages:
- Ensures safety
Today, you can conveniently open Bank Account online. The primary benefit of such an account is the security it provides. The RBI regulates banks in India and has strict regulations to ensure your money stays safe. Keeping your money in this account also prevents you from worrying about misplacing or losing money. In addition, you can use this account to build an emergency fund.
- Earns interest
The interest rate on your Savings Account may not be the highest among various investment options. However, it still lets you earn a modest return on your savings. Over time, even a small interest rate can significantly boost your savings.
- Provides access to investments
When you open such an account, you can make goal-oriented savings by opening a Term Deposit. You also get access to Mutual Funds.
- Builds your credit history
Transactions in your Savings Account can be used to determine the cash management of any person. Hence, it might be easier for you to apply for a Loan from your bank, as you already have a history with the bank.
- Encourages financial discipline
Having a dedicated Savings Account builds financial discipline. It separates your savings from your spending. This, in turn, makes it easier to track your progress towards your financial goals. Online Banking platforms allow you to monitor your account and set up automated investments conveniently.
- Ensures liquidity
These accounts offer high liquidity. That is, you can withdraw your money whenever required. This liquidity is essential for handling emergencies. It also manages your daily expenses.
- Avail of easy account opening
Today, you can open a Bank Account online from anywhere and anytime. Visit the website of your chosen bank or download their Banking app. Complete the account-opening process, and your account is accessible instantly.
Hence, a Savings Account not only allows you to save money but also works as a crucial addition to your financial plan, providing several advantages.