Features of Savings Account | Advantages, Benefits, & Importance
  • Personal
  • Business
  • Corporate
  • Private Banking
  • Privy League
  • NRI Services
  • Investors
  • Personal
  • Business
  • Corporate
  • Private Banking
  • Privy League
  • NRI Services
  • Investors

We inculcate the habit of savings from our very childhood. We all remember maintaining a piggy bank in which we used to save the surplus funds that we received in our early age. However, as we grew up our savings requirement changed from time to time. One of the first steps we took towards our saving journey was to open a Savings account in a bank or a financial institution.

Savings Bank account comes with a varied range of benefits that will help us in our saving journey and to create surplus funds for our better future. Let us know about some of the benefits of savings account and how it makes our monetary management journey an easy experience.

Safe Avenue for funds

With the advent of electronic banking system, we all are at peace that the money we have saved in a savings bank account is safe with the security of bank. It can easily be termed a some of the safest ways to save your money and earn interest on the same.

Provides you with a consistent interest

Why we say that savings bank account is one of the best and safest places for keeping money because of the fact that we earn continuous and consistent interest on the money we have saved in the account. Hence, while you save your money you also earn sufficient amount of interest on the amount.

Inculcates financial discipline

Cash is even more effectively available when kept at home. It prompts numerous negligible spending and diminished savings. Nonetheless, with a savings account, you will utilize it just for required costs. Besides, it assists with meeting your objectives, as well. For instance, got your eye on a beautiful luxurious bag? You can open a different fixed deposit account and transfer a piece of your savings routinely until you arrive at your monetary objective to make a lumpsum withdrawal to purchase the dream luxurious bag.

Enables instant payment services

With the different benefits of opening a savings account one of which is to make payments, withdrawals, or any kind of transitions as and when required. In the present frame, even digital bank savings account assists us to make instant payments from the comfort of our home. Link your account to UPI or use the debit card immediately to make the purchase you want to.

Provides special value-added services

Many banks these days offer some incentive added advantages with a Savings Account. A few banks limit the purchases with vendors or cashback or reward points on the debit card. Alongside that, many banks give some fundamental type of health or accidental cover, travel protection or insurance, and different sorts of protection covers for opening the financial balance. By picking an account that gives these advantages, you can get additional worth. A Savings Account additionally offers a passbook, net banking, cheque, debit card etc.

Additional Read: The benefits of using OTP-based e-KYC to open a savings account

Convenient money management
Convenient money management is another answer to the question - why is it important to have a savings account that people frequently ask. Savings account come with an ATM cum debit card, facility to use net and mobile banking, passbook, and cheque transactions. It a wide bandwidth of using the money we have saved it has become a very convenient and uncomplicated way to manage our funds. While it saves our money, lets us earn interest it also provides as an effective and quick way to use the money whenever required.

Provides you liquidity

One of the significant benefits of a savings account is its liquidity. You have total access to your money and can make transactions anytime 24*7. When you open a savings account with a bank or financial institution, it grants you a debit card. You can use this card not only to withdraw cash anytime and anywhere but also to pay for your bills both online and offline.

Easy to open

In the present times, banks have made it too convenient and quick to open a bank account. You can also open a digital savings bank account instantly from the convenience of your home or office.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.