What Is A Savings Account?
Savings is a habit and it's good to start early. Whether you are a salaried professional, a student, or a retired individual, you must save money as frequently as you can. You will see your finances more organised once you have learnt this habit. The next and the most important step is to open a savings account to stick to saving habit.
With zero balance savings account, individuals can experience a hassle-free banking experience. One of the significant benefits is that there is no minimum balance requirement, so customers do not have to worry about any charges or fines for non-maintenance of their account balance.
Your initial concern when selecting a savings account may be keeping the money safe. Though these accounts usually yield only a low interest rate, their security and dependability make them an excellent choice for storing funds for short-term or long-term requirements.
Funds Should Be Parked In A Safe Place
It is safe to park your surplus funds in a savings bank account. With a savings bank account, you don't need to keep cash on you at all times, and you don't have to worry about possible theft. This also is a feature of a current account which provides great flexibility and security for your funds.
Take Advantage Of Digital Banking Services
With the recent push by the government for digital payments, the importance of this feature of savings bank accounts has increased manifold. With digital banking, you can enjoy many facilities, such as net banking, NEFT, RTGS, IMPS, UPI, etc. This allows you to operate your account without visiting the bank branch.
Government Schemes Benefits
You must have a savings account to be eligible for government schemes and subsidies. The government is promoting direct benefit transfers to remove middlemen, which can only be received via a digital savings account. For those without a regular income, reputed banks like Kotak811 offer zero balance saving accounts, which do not require you to maintain a minimum balance.
Must Read: Benefits Of Zero Balance Savings Account
A savings account online allows you to make and receive payments without going to someone's place. You can directly make payments to the beneficiary's account or receive payments in your account.
Income From Interest
Keeping spare cash in your home will not generate any income. By depositing this money in a savings account, you will not only be able to protect it but also be able to earn interest on it. Savings account interest rates vary from bank to bank. Some banks offer as low as 4% interest per year, while Kotak811 savings account with ActivMoney feature provides as much as up to 7%* p.a. interest, equivalent to a fixed deposit scheme. So, choose wisely.
Planning Your Finances
A bank account can help you understand your financial standing by providing a clear picture of your savings. This will allow you to plan your investments. While you identify suitable investment schemes, you can keep your money safe in a savings account.
You Don't Need To Carry Cash
A debit card is included with every savings account. It allows you to make purchases without having to carry cash. Many vendors offer discounts and schemes when you use your debit card to make payments. Moreover, with an extensive ATM network across India, you can easily withdraw cash from your account.
The use of a savings account prevents you from getting into debt. With a savings bank account, you get a real sense of security regarding your finances, unlike credit cards which accumulate debt with each usage. With a savings account, you learn to be wise with your spending and stay within your means.
A savings account is a crucial component of a smart financial strategy. It provides stability, liquidity, and the potential to attain your financial objectives while laying a solid financial basis for the future. A savings account allows you to take charge of your financial circumstances and strive toward a more reliable and secure future. It helps you be prepared for emergencies, short-term necessities, or long-term goals.
For hassle-free financial management, consider opening a zero balance savings account online. You only need your Aadhaar and PAN card details to complete the KYC process and open this account. This digital savings account lets you enjoy significant interest rates on your savings, shop and pay with a no-fee virtual debit card, and control your account from your phone.
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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.