If you think you don’t need a savings account, think again – with the reasons why you need one, in this article.
Every person wishes to have a nest egg for the future. But it all boils down to how you go about creating that nest egg. Rising living costs and inflation cut into your income, making it difficult to even save money regularly.
But saving money is the most basic way to create wealth, though it takes a lot of perseverance. Start by applying for a savings account with a leading bank.
Consider the benefits of opening a savings account:
* Open it online. There is no reason why you should visit your bank to open the account. Log on to the bank’s portal, and open the bank account online without signing any paperwork or submitting the forms to the bank branch.
* Your savings are stored safely. It has been amply proved in the recent past that keeping money in the form of cash is an unsafe practice. There may not be another note ban on the horizon, but if you keep savings at home, they will not grow either. A bank account keeps your money in the bank’s custody, so you are saved the hassle of looking after it.
* You have instant access to your money. Perhaps the biggest benefit of having a bank account is that you get immediate access to your money, whether you wish to order groceries online or have cash on hand. There is no need to withdraw cash from the bank branch or go looking for an ATM – your debit card, or third party payment apps, help you transact digitally on the go.
* Earn on your savings. Every bank pays savings account interest on savings. While most banks pay 4% bank account interest, leading banks are paying up to 7% interest depending on the size of the savings deposit. The more you save, the more the deposit earns.
* Tremendous convenience. Online savings accounts give you real time access to your money, so you don’t need to depend on your bank’s business hours to bank. Your debit card is linked to your account so you can use it any time and go cashless. Besides, UPI apps and other payment apps are also linked to your account, so you can effect transfers and bill payments on the go.
* All your accounts, loans and investments with the bank are linked together. Another benefit of the savings account is that it is linked with all your other accounts with the same bank. For instance, your savings account can be linked with personal loan/home loan account, mutual fund investments and even insurance policies. Thus, account management and monitoring become much easier.