Savings Accounts are popular Bank Account, and opening them marks your first formal relationship with any financial institution. You can use this account for several purposes, and it is typically the foremost account you open when starting your financial journey. So, if you are still unsure if you need a Saving Account, here is a handy guide that should help.
What is a Savings Account?
Such a Bank Account is the most basic account offered by any bank to their customers. These may be of various types and lets you deposit your money safely with the bank. It eliminates the need to carry your funds everywhere and ensures its safekeeping. You can also easily withdraw cash from this account whenever needed. Hence, it is relatively liquid.
How to open it?
Today, opening a Savings Account is easy, and you can conveniently do so online without any hassles. So, after you have chosen your bank, follow these basic steps to open one online:
- Visit the website of your preferred bank or download its Banking app
- Complete the formalities and upload documents like PAN cards, address proofs, etc.
- Opt for video-KYC as this makes the process easier
- Once your bank verifies the details, they will open your Savings Account
Benefits of opening this account
The essential advantages you can enjoy after an online Savings Account opening include the following:
Earn interest on savings
Bank Accounts keep your money safe and enables you to earn interest at competitive rates.
Reach your financial goals
Use the funds in your Savings Account to reach your financial goals by opening a Fixed or Recurring Deposit. These are risk-free investments and let you earn assured returns at fixed rates determined by your bank over time. You can also use your account to invest in Mutual Funds.
Automate bill payments
With a Bank Account, you can eliminate the tedious process of paying your bills on time every month. Instead, you can register your billers and instruct your bank to deduct the money automatically from your account. This saves the trouble of remembering to pay your bills and keeps you from missing out on due days.
Track your spends
When you open an online Savings Account with a reputed bank, you can access tools like a Spends Optimiser from your bank app. Such a tool lets you easily track expenditures and plan your investments and budgets accordingly.
Track your income
When your income gets credited to your Bank Account, it is easier to calculate your gross annual income. This, in turn, helps with the income tax calculations.
Pay for purchases instantly
You can quickly pay for your purchases with facilities like Debit Cards, UPI, etc. Having a Savings Account also enables easy fund transfers online.