Savings Account uses you might not know about

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.

Savings Account uses you might not know about

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 ReadFeatures 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.