What You Need to Know Before Opening a Savings Account

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A savings account is one of the beneficial banking accounts that any person can gladly invest in. It is used for various purposes. If you think about it, there are various kinds available under the savings account approach. Each one has different requirements and learning about that before planning to open a savings account is really very important. For most people, a savings account will be the very first interaction with the financial and banking system.

As there are various other investment sources becoming way more attractive than a savings account, this source might have lost its sheen a bit. But still, you cannot deny the importance of a savings account. Want to know more about it? Let’s focus on the plans then.

Safer avenues for the funds:

Saving accounts will always be that safer avenue for the funds. The fund that you keep in saving accounts will stay there intact unless you plan to withdraw it or pay it out. This might be the main reason why a savings account commands a lower interest rate.

  • But, you must remember that savings accounts are liquid in the sense that customers can easily withdraw money up to any particular limit for any time of the month.
  • This chalks out to be quite beneficial for salaried employees and even senior citizens, who can easily withdraw their monthly expenses and then earn interest on other balances.
  • Another major point of consideration is that savings accounts can ensure around 1 lakh rupees by Deposit Insurance and the Credit Guarantee Corporation.

Get some of the special added values:

Some of the banks these days are offering value-added services alongside benefits after opening up a savings account with them. Various banks are presenting discounts on purchases with cashback or merchants or even reward points on ATM and debit cards.

  • Apart from that, some of the banks will offer a basic form of medical or accident insurance, foreign travelling insurance and other coverage for opening that bank account.

By selecting the account that offers you some benefits, you can always get that extra value. 

  • This account will further provide net banking, passbook facility and even cheque book facility.

Always collect funds and make the payments you want:

A savings account will be an excellent place for you to collect funds from multiple sources. There won’t be any limitation to the number of cheques you get to deposit or payments to be made from that same savings account. So, the entire work seems to be hassle-free to own and even to operate. Just check in with the bank interest rates on savings account before making the final call!

Income-based generating account:

Unlike any of the current accounts, a savings accountbank will earn interest. The balance that you will earn will help in improving the income of every individual. Some of the banks present higher interest rates for maintaining a higher scale of balance. Then you have others offering sweeps in the facility to help earn higher interest income. 

Check-in with all the options before taking one final step towards a savings account.