Have you ever wondered what makes a Savings Account work? Whether you already have experience in saving money or are just getting started, let us discover how these accounts make fund management easier and help you grow your wealth effortlessly. When you open it, you can safely store your money while earning interest. The goal to open a Savings Account is to encourage saving with the perk of a secure and accessible place for your funds.
These are common accounts in India, offering easy deposit and withdrawal options. They provide liquidity and let you access your money anytime via ATMs. They also pay interest on your balance. Additionally, you can transfer money online and select from different Savings Accounts to suit your needs. Here are the classic features offered by them:
- Quick and easy financial transactions
The primary goal of having a Savings Account is to manage your earnings and send and receive money. It serves as a base for all financial transactions and reduces cash dependency. These transactions are done easily through Net Banking through NEFT/RTGS/IMPS facilities, ATM or Debit Cards, cheques, or cash withdrawal slips.
Also, banks now offer dedicated bill payment facilities to let customers set standing instructions for paying utility bills, such as electricity, water, phone, gas, etc.
2. Interest earnings
Every Savings Account in India lets you earn interest from 3% to 7%. This rate varies between banks and often depends on the RBI’s decision on repo and reverse repo rates. Interest earnings allow customers to earn money from their deposits and gradually grow their savings.
3. ATM and Debit Card facility
Whether you open a Zero-Balance Account, a Regular Savings Account, a Senior Citizen Account, or a Salary Account, you receive an ATM or Debit Card linked to it for ATM withdrawals and online and retail transactions. While withdrawing cash, you can find an ATM branch of your bank or access your account from another bank's ATM if you need funds urgently.
4. Passbook and chequebook facilities
Opening a Savings Account involves receiving a passbook and cheque facility. A passbook records your account statement and lists all your transactions. A cheque is a written, dated, and signed instrument that directs banks to pay a specific sum to the bearer or account holder.
5. Online Banking
Every bank provides Online Banking facilities with your account if you opt for them upon account opening. They empower you to send and receive payments and track finances by logging in to your account online.
Conclusion
While you can opt for Zero-Balance Accounts at attractive interest rates in India, most Regular Savings Accounts make it mandatory for customers to maintain a minimum average balance. If you fail to do so, you pay a penalty. These charges differ across banks. Nomination and auto-debit facilities are also available for all Savings and Deposit Accounts.
Comments