5 MinsJune 11, 2022
Kabir Juneja, 25, was excited when he opened a new savings account at Axis Bank. His earlier savings account had
been opened by his father basically to facilitate payment of fees while he was studying for his engineering
degree.
But the new account was special. Kabir now had a job, and his first salary had just been credited. When he showed
his account statement to his elder sister Kavita, she was amused by his sense of excitement. She told him that now
that he had his
hard-earned money in his own savings account, he should also check what other benefits it offered. She listed a
few likely ones:
1. Automated bill payments: Kabir could automate the payment of his monthly mobile bills
from his savings account. In time, he can add auto-payments to various bills like utilities and even EMIs (equated
monthly instalments)
to his savings account.
2. Sweep-in facility: Kabir earns a salary of Rs. 35,000 every month but is not likely to
spend more than Rs 20,000. His savings account has a minimum balance of Rs. 10,000. He can keep a threshold of Rs.
25,000 and opt for
a sweep facility where any excess amount over Rs 25,000 can be transferred to a fixed deposit account. This will inculcate financial discipline and
an investment habit at the same time.
3. Digital Payments: A savings account will allow Kabir to make digital payments via net
banking or UPI (Unified Payment Interface). This will solve the hassle of having to carry cash all the time.
4. Higher savings rate: Some banks offer a higher savings rate if the average balance in
the account is over Rs 1 lakh. If Kabir is financially diligent and fiscally prudent, he can earn more interest on the money in his account.
5. Promotional offers: Banks often have tie-ups with businesses like restaurants, malls,
and mobile and clothing brands. If Kabir's savings account meets the Bank's criteria, he can avail of these
discounts.
[Also Read: Features
to look for when opening a digital savings account]
6. Insurance: Each depositor/retail customer of a bank is insured for a maximum of Rs 5
lakh for both principal and interest. Apart from this, certain savings accounts also come with life insurance for
the depositor. Kabir
should check with his Bank if he qualifies for the same. Banks should also insure debit cards in case of theft or misuse.
7. Tax returns: Kabir’s savings account will record all his income, expenses and
investments. This will make filing tax returns a breeze.
8. International debit cards: Kabir has dreams of saving and travelling to see the world.
The international debit card that comes with this savings account will be useful for overseas shopping and travel.
9. Demat accounts: Axis Bank has three-in-one savings, trading and demat accounts. Kabir should check if such a
facility is available on his account. This will
help in investing in stocks, bonds and mutual funds.
10. Credit card: If Kabir maintains a healthy bank balance and a good financial history,
the Bank could offer him a credit card. Apart from its convenience, the
card will also help
him build a credit history, which will come in handy while borrowing. Kavita drilled it into his head that Kabir
should check with his Axis Bank relationship manager about which benefits he is entitled to and what it would take
to enjoy the
other benefits.
Axis Bank offers a range of Savings Accounts, including Digital Savings
Accounts, with benefits tailored
to meet the needs of its millions of customers. You can check them out online.
Disclaimer: The Source, a content creation and
curation firm has authored this article. Axis Bank does not influence the views of the author in any way. Axis
Bank and The Source 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. Names mentioned in this article are fictitious in nature and only for
explanatory purposes.
