What Are The Benefits Of Holding A Savings Account?

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What Are The Benefits Of Holding A Savings Account?

When we think of investments, Fixed Deposits, Shares, and other instruments come to mind. The returns they offer is significant. But sometimes it is more than these aspects. What if you want to keep your funds safe without locking them or facing risks? What do you do then?

The simplest option, in that case, is a Savings Account. It is the most basic banking product that lets you store your funds. It also offers a nominal interest on the same. It comes with zero risks and high liquidity. It is an ideal choice to keep your money safe and use it conveniently as you go. We all use it but rarely recognise its advantages. This makes us lose out on thoroughly enjoying our banking experience.

Emergency funding

It offers money when you need it, unlike other vehicles that require you to make complicated arrangements. Here, you have the convenience to get the funds within minutes. Hence, it is a handy option during urgencies. This makes it an essential banking product despite other offerings.

Safekeeping

If not anything else, it stores your finances. Keeping excess cash at home is risky. You pose threats of loss, theft, misplacement, etc. It lets you avoid this by keeping your funds safe with stringent security measures. Most banks are insured by the Federal Deposit Insurance Corporation (FDIC). Besides, even if you open Bank Account online, you get advanced encryption, two-factor authentication, and other services.

Minimum requirement

It comes with a minimum balance requirement that ranges between Rs. 500 to Rs. 2,000. Hence, you get to start saving with little money. Moreover, specialised accounts for kids, senior citizens, and students have even lower requirements. So, choose the suitable type to avail the maximum benefit.

Easy accessibility

Since the advent of the internet, getting access to funds is a matter of clicks. You need a decent internet connection and a smart gadget. The rest gets done conveniently through banking apps and portals. From checking balance, transferring funds, making payments, and shopping, everything is easily accessible.

Automated payments

Almost all households incur a pile of bills monthly. This involves mobile & DTH recharge, electricity bill, water supply, gas connection, etc. It becomes a hassle to manage them separately. Therefore, banks make this easier for you via the 'Auto-bill pay' feature. Here, you get to schedule the payments, and the amount gets debited automatically within the due date.

Money management

You can monitor and maintain finances with a Savings Account. This means you can use banking apps, net banking portals, automated teller machines, etc., for transactions. It entirely depends on your preference and convenience. Most banks have both online and offline presence. Therefore, you enjoy the benefits of both worlds to handle your finances without concerns.