A savings account is an essential bank account that allows you to save money in a secured place and can access at the time of need. Financial institutions offer some profit rates on the balance maintained in a savings account.
There are multiple benefits in having a savings account. One can start a savings account whenever they want as the process is so simple. Most of the financial firms allow you to apply for a savings account online by providing ID proofs and other necessary documents. The applicant has to be 18 years or above to start a savings account.
The savings account is easy to maintain. There are several banks that provide savings account with no or less minimum balance criterion.
The following are the reasons to have a savings account.
You can access the money present in the savings account whenever required. The bank provides an ATM card to access money from your account. Apart from the ATM cards, banks provide cheque book as well on the savings account.
The money is safer in the savings account in the financial institution. The money will be insured in the savings account which means money is protected even if the bank goes under.
Risk-Free Money growth
The Savings account provides a safe growth of money by offering competitive interest rate. For people who are willing for risk-free options to raise their money, the savings account can be a good option.
Also Check: How to choose a Bank to open a Savings Account?
Flexible account options
Most of the financial firm/banks allow you to open multiple savings account. This allows you to utilize the savings and budget for different purposes.
The savings account is the right place for planning an emergency fund. This fund serves as a reserve in case if you need cash in case of unexpected expenses, medical emergencies, etc.
For huge expenses like home remodeling, vacations, vehicle, down payment for a property, etc requires money.
Maintaining savings in the savings account is a beneficial financial habit. By setting money aside on a systematic basis you can develop a habit for saving money which fulfills your needs in the long run. Indirectly you are working on your financial stability.
There are multiple benefits in having and maintaining a savings account. These benefits are the provision of locker, debit card, cheque book, etc.