The importance of Savings Account cannot be overstated. It is the cornerstone of financial wellness, offering a secure place to store your hard-earned money while gaining access to various financial benefits. Saving money is an essential skill that needs to be taught to kids and a Savings Account is the best way to begin the journey. Setting aside some money in a Savings Account will help you during emergencies. It will also help to materialise your dreams.
Reasons to keep maximum money in your Savings Account
Keeping a significant amount of your money in a Savings Account is beneficial for several reasons; it ensures your funds are easily accessible when you need them. More importantly, it is a good way to keep your money safe while also making some extra money from it.
- Earn higher interest when you make greater savings
One compelling reason to maintain a healthy balance in your Savings Account is the potential to earn higher interest rates. As your savings grow, so does the interest you accrue. This becomes a passive income source that can contribute to your financial goals over time.
- Avoid unnecessary spending
Having a Savings Account helps curb impulsive buying habits. When your money is tucked away in a Savings Account, it requires a conscious decision to withdraw funds, thereby reducing non-essential expenditures.
Reasons why Savings Account is important
- Safe avenue for funds
A Savings Account stands as a secure place for your funds, providing a stable environment where your money remains until you decide to withdraw or use it.
This stability is the reason behind the typically lower interest rates associated with Savings Accounts. Yet, its liquidity is a key advantage, allowing customers, including salaried individuals and senior citizens, to access their funds whenever necessary.
The security of Savings Accounts is also bolstered by insurance up to ₹5 lakhs by the Deposit Insurance and Credit Guarantee Corporation (DICGC), offering an additional layer of financial safety.
- Provides special value-added services
With the onset of modern banking, many institutions now offer various value-added services with a Savings Account. Customers can enjoy benefits such as discounts on purchases, cashback, and reward points on their Debit Cards.
Additionally, banks often provide complimentary insurance coverage, including basic accident, medical, and even foreign travel insurance, as incentives for opening a Savings Account. Facilities like passbooks, online banking, and cheque books further enrich the banking experience.
- Place to collect funds and make payments
Acting as a financial hub, a Savings Account simplifies the management of your money. It serves as a central point for depositing income and disbursing payments, streamlining your financial transactions and making it easier to track your money.
- Income generating account
A Savings Account, unlike a Current Account, offers the potential to earn interest, thereby contributing to an individual’s income. Axis Bank offers 3% to 3.5% interest rates for accounts with higher balances. It also offers features like the sweep-in facility, which allows customers to earn higher interest, enhancing the income-generating capability of a Savings Account.
- Can help plan your child’s financial future
Starting a Savings Account for your child such as Future Star Savings Account, not only teaches them the value of money and saving from an early age but also accumulates wealth for their future. It is a practical approach to building a financial safety net that can support their education, first car, or even contribute to their first home.
Also Read: Top 9 benefits of having a Savings Account
Conclusion
Opening a Savings Account is crucial in today's financial world. It offers a stable foundation for managing your wealth, with the flexibility and security necessary to navigate life's unpredictability. Recognising why it is important to have a Savings Account helps you appreciate its role in fortifying your financial well-being and achieving your saving milestones.
Axis Bank elevates this experience by offering instant account opening, catering to diverse needs with its various account types, and providing access to over 250 banking services through India's top-rated mobile banking app. With added perks like cashbacks, gift vouchers, and complimentary airport lounge access, an Axis Bank Savings Account transcends traditional banking, delivering a premium experience that rewards you at every step.
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.
