Top 9 benefits of having a Savings Account

When you reach the age of 18, you usually open a Savings Account as your first-ever bank account. It is the most basic account you need to have if you want to send or receive money through your bank account. A Savings Account is a highly regarded financial tool due to its reliability, safety, liquidity and convenient accessibility. In this blog, let us discuss the features and the benefits of Savings Account.

What is a Savings Bank Account?

A Savings Account is a type of bank account where you can deposit your money and earn a nominal interest rate. You can also open a joint savings account with another account holder. There are different types of Savings Accounts, such as regular, salary, zero balance, and Savings Accounts designed for women, minors, and senior citizens. Axis Bank provides a range of Savings Accounts tailored to meet the diverse needs.

Features of Savings Account

Here is a list of some of the most essential features of Savings Account:

Interest rates vary among different banks, ranging from 3% to 7% for regular customers. Senior citizen customers enjoy an additional interest rate of 0.50% above these regular rates.
Bank deposits up to Rs. 5 lakh are insured by the DICGC (Deposit Insurance and Credit Guarantee Corporation), providing a layer of security to your savings.
Accountholders can transfer or withdraw funds conveniently based on the type of savings account chosen, ensuring easy access to their money when needed.
A savings account allows account holders to link it with fixed deposits within the same bank, maximising their investment options.
The account also enables users to perform fund transfers through UPI (Unified Payment Interface), NEFT (National Electronic Fund Transfer), RTGS (Real Time Gross Settlement), IMPS (Immediate Payment Service), net banking, mobile banking, or by visiting the branch.
Some savings accounts have a monthly average balance requirement. Ensure that you meet them to avoid any potential charges.

What are the benefits of Savings Account?

In today's dynamic financial landscape, having a savings account is a fundamental building block for managing your money effectively. This simple yet powerful financial tool offers numerous benefits that can positively impact your financial life. Here are the advantages of savings account and how it can be an essential tool for real-world finance.

1. Introduction to real-world finance

A savings account is often the first step toward financial independence and security. It introduces you to the world of finance, teaching you the importance of saving and managing your money wisely.

2. Earns money for you

One of the primary advantages of Savings Account is that it allows your money to work for you as it helps to accrue interest on your deposits. Over time, this interest adds up, helping your savings grow steadily. It's like a small, continuous reward for your responsible financial behaviour.

3. Debit cards

One of the major benefits of Savings Account is gaining access to a debit card. As soon as you open a savings account, banks issue a debit card to you. Debit cards allow you to access your funds easily, make purchases, and withdraw cash from ATMs. It is your first step towards experiencing a seamless and secure way to manage your money.

4. High liquidity

Savings accounts offer high liquidity. It means you can access money whenever you need it. There are no lock-in periods. This liquidity ensures you are prepared for both expected expenses and unexpected emergencies.

5. Digital services

Modern savings accounts often come with digital banking services. These platforms grant you 24/7 access to your account, allowing you to check your balance, transfer funds, pay bills, and monitor your financial transactions from the comfort of your home or on the go.

6. Value-Added Services

Many banks offer additional perks and benefits to Savings Account holders. These can be discounts on various services, access to financial planning tools, and exclusive credit card or loan offers. These value-added services enhance your banking experience and can save you money in the long run.

7. Money is Safe

One of the paramount concerns in financial management is the safety of your money. The benefits of Savings Account come to the forefront in this regard, providing a secure environment for your funds. These accounts are insured by government agencies, guaranteeing that the benefits of a savings account extend to the protection of your savings even in times of economic uncertainty.

8. A place to receive funds

Your savings account is a reliable destination for receiving funds from various sources. Whether it's your salary, payments from freelance work, or money from friends and family, having a designated account simplifies managing your incoming finances.

9. Emergency fund

Lastly, a savings account is ideal for building and maintaining an emergency fund. No one can predict life, as unexpected expenses can arise anytime. A readily accessible pool of savings can provide peace of mind, helping you navigate financial challenges without resorting to high-interest loans or credit card debt.

Also Read: Complete guide on how to open a Savings Account in 5 easy steps

Final thoughts

In conclusion, the benefits of Savings Account extend beyond being a mere repository for money; it serves as a valuable tool for achieving financial goals and building a secure future. Whether you're saving for a vacation, a down payment on a house, or a rainy day, a Savings Account provides the financial flexibility and peace of mind necessary to navigate life's financial twists and turns. Opting for a Savings Account is a wise choice for anyone looking to take control of their finances and plan for a brighter tomorrow.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.