Features of savings account
A savings account is one of the banks' most commonly offered financial services to help you manage your money. This account allows you to withdraw and deposit funds at your convenience. You can carry out these transactions through online transfers, ATMs or by directly going to the bank. The process to open these accounts is pretty simple!
You also earn interest on the money you deposited in your account! In this article, we will explore some of the main features and benefits of savings account.
When you open a savings account in a bank, there are various features of a savings account that will prove helpful when you deal with your money.
Read More: How To Open A Savings Account?
- One of the best features of savings bank account is that they allow you to make and receive payments from others.
- They also provide you with a debit card to draw cash at an ATM or make online transactions.
- You can also access features like Internet and mobile banking through these accounts.
- These accounts also offer cheque and passbook services through which you can check the records of your bank transactions.
- You also receive SMS updates from your bank when you make transactions.
- Savings account also provide various investment options, such as fixed and recurring deposits.
What are the benefits of a savings account?
Apart from offering an annual interest at the rate of 2.5% to 7%*, there are several benefits of savings account that will make your financial aspects of life easier to manage! Check out these extensive benefits below!
Liquidity
With a savings account, you always have easy access to your funds! You can withdraw your funds through in-person bank visits, ATM withdrawals, or online transfers. This liquidity of funds makes a savings account ideal for both short-term saving goals and emergency funds since you can withdraw it whenever needed!
The best part is that your bank automatically calculates the interest earned based on the amount in your savings account and deposits this interest into your savings account.
Safety of funds
One of the benefits of bank accounts is that they give you peace of mind and a good night's sleep. Wondering how? Since all your funds are safely deposited at the bank, the chances of it being misplaced and stolen are significantly reduced.
In addition, your accounts are insured for up to 1 lakh rupees by the Deposit Insurance and Credit Guarantee Corporation! So if something happens to the bank, you can be assured that your hard-earned money is protected!
Additional earnings with auto sweep facility
With this benefit, all your funds above a specific limit are converted into a fixed deposit. Through this features of savings account you can now earn additional earnings. You can now earn higher interest amounts than a regular savings account.
This feature is useful, especially when you have a significant amount of money in your account and no anticipated future needs!
Read More: Demystifying Recurring Deposit Accounts (RD)
Automatic debits for payments
When it comes to subscriptions, utility bills, and loan amounts, it is a major hassle to keep track of the due dates and ensure that the payments are made within the deadlines.
However, with automatic debit, you can ensure that all your bills and payments are made at the right time to avoid late fees! With this feature of savings account, your bank automatically debits the money preventing the trouble of manually enabling payments!
Auto credits for investment incomes
Another benefit of a savings account is auto credits for investment incomes. You can automatically transfer these to your savings account if you have invested in stocks, bonds, or mutual funds that generate earnings or dividends.
Wondering how? All you have to do is link your savings account to your Demat account and other investments! You can now bid goodbye to the hassle of physically visiting different financial institutions to get your funds transferred to one place!
Convenient fund transfers
A savings account allows you to transfer funds from anywhere across the globe! Whether you are paying a friend or are repaying a debt, all it takes is a few clicks. With these features of bank accounts, you can access your funds even outside traditional bank hours!
As a savings account holder, you can transfer funds through any of the below modes.
- National Electronic Funds Transfer (NEFT)
- Real-Time Gross Settlement (RTGS)
- Immediate Payment Service (IMPS)
- Unified Payments Interface (UPI)
Financial discipline
Having hard cash on hand can sometimes encourage people to spend impulsively. However, you can learn to balance your expenses and savings with a savings account. With the built-in tools, you can track and analyse spreadsheets showcasing your spending patterns.
It can help you modify your spending patterns and build healthy financial habits.
Joint accounts
Lastly, we arrive at the benefit of opening a joint account. This account is perfect for shared financial goals. Whether you are saving money for building your dream house or for a luxurious vacation, this account becomes extremely useful.
Apart from providing access to signing cheques and operating banks to multiple people, this account enables complete transparency. Since all the joint holders can keep track of expenses, financial accountability and open communication are highly boosted! Sometimes having joint accounts can also mean higher interest rates and more reward programs!
Conclusion
So this brings us to the end of this article. Remember, a savings bank account offers various features and benefits that enhance your financial well-being. Apart from earning interest on your money, you also gain security and accessibility. With the Internet and mobile banking storming the banking sector, transactions have become even easier.
All you have to do is scan the QR code or enter the UPI ID and enter your PIN to enable the transaction. It means you do not always have to worry about carrying hard cash! Whether shopping online or paying your child's school fees, these features will prove useful over time.
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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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