Fri. Feb 21st, 2020

Benefits of Savings Account

2 min read

Now that you know how to open a savings bank account, it’s important to know what benefits it offers and how it serves our financial needs.

It Inculcates Saving Habit

Saving is important for three basic reasons; emergency, necessity, and daily expenses. A savings account helps you in getting in to the habit of saving, so you can sustain your future expenses.

It Protects Your Money

Banks act as a repository of your money. They accept your deposits, keep it safely, and let you withdraw whenever you need it. Moreover, they not only protect your savings but, also help you manage your finances in a better way.

It Earns You Interest

The money in the savings account doesn’t lie idle; it earns interest. Banks pay interest on your deposits, even when the account is dormant.

You Can Withdraw Whenever You Want

Banks operate at the best intention of your convenience. To withdraw money from your savings account, you can visit the bank during the business hours or go to an ATM with your ATM/debit card. Many ATM counters operate 24×7 so that you have the access to your money around the clock.

Use Cards for Cashless Transaction

Cashless transaction is an advanced way of carrying out banking operations. Banks tend to encourage their customers towards the extensive use of debit cards for withdrawals, deposits, tax and bill payments etc. However, it’s important that you follow the debit card best  practices in order to prevent any potential frauds.

Transfer Money Online

Internet banking has opened so many ways of financial convenience. You don’t have to visit the bank to send money to you dear ones. Do it at home using the internet banking service of your bank.

Get Access to Negotiable Instruments

Negotiable instruments like cheques, demand drafts, and pay order can be conveniently used for outward payment and money transfer. The amount goes directly from your account to the recipient’s.

Get Monetary Benefits from Govt. Schemes

Govt. scheme like PAHAL transfers the LPG subsidy directly to your linked savings account.

Use Electronic Clearing Service

ECS is an electronic mode of payment, which is mostly used when the nature of transaction is periodic and repetitive. You can use this facility for payment of bills, loan installments, insurance premium, mutual funds etc.

Savings account is the beginning of your relationship with a bank. However, before opening the account make sure you abide by the terms and conditions of the bank to avoid confusions in future. Hope you find the article helpful. Add your valuable comments to make it more informative.

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