Almost all of us have at least one savings account in which we save our funds and earn interest on the same. However, it is claimed to be one of the safest places to save our money. Do you agree with the same?

If not, we have many reasons that suggest a savings bank account might really be the ideal place to keep your money in safe hands with negligible chances of loss. 

Why Are Savings Accounts the Safest?

While we talk about a savings account being one of the safest places to save our funds, we need to understand why it that the account is considered the safest is.

Simply, it is an account in a renowned bank in which you deposit money and earn interest on the saved amount. The funds are not invested anywhere and losing the amount is not an option by any chance when it comes to keeping or safeguarding your cash in this type of account.

Here are some of the reasons why it is claimed that the Savings account is one of the safest options to save and invest your funds-

1. Low Maintenance Charges

Banks used to charge a yearly maintenance expense for maintaining your savings financial balance. Nonetheless, this construction has been supplanted with the monthly average balance charges.

In present times, banks offer accounts on low maintenance charges for the betterment of banking services and improved banking facilities for their clients.

2. Easy Accessibility

You might have money put into routes that could yield preferable returns over how a savings account can help you. Be that as it may, funds in your savings account are generally available, in contrast to a fixed deposit or even mutual funds.

You can use your money right away without any hassle. Indeed, even minors can open and transact from a savings account, and guardians or parents can work it until the account holder is legitimately qualified to assume command of the account.

3. Ease of Operation

Savings accounts commonly accompany passbooks and cheque books to empower exchanges and fund maintenance. Also, most Indian banks offer a debit card and the simplicity of phone and internet banking.

It also makes it simple to work and execute with this account through a mobile banking application, and it additionally guarantees that you are in charge of it making it the safest place for keeping money and safeguarding it.

4. Minimum Balance

Every savings bank account in India comes with a minimum balance that you will have to maintain to ensure your account is running and active. It differs from bank to bank on how much set minimum balance cap they create for their account holders.

There are also banks offering zero-balance savings accounts that ensure that you do not have to maintain any balance in your savings account and use it till the last penny.

5. Family Benefits

Your savings account and your money will stay open to your family or individuals you have assigned even after you are no more. Therefore, regardless of what other place your money has been invested, your family's future is dealt with ease when opening a savings account.

 Additionally, various kinds of savings account can be looked for while picking the ones that will offer the most advantages to you and your family.

6. Provides Special Value-added Services

Many banks these days offer some incentive added services and advantages with a Savings bank Account. A few banks provide limits on buys with sellers or cashback or reward points on the ATM cum debit card. Many banks equip their customers with:

  • Some accidental cover or clinical protection.
  • Unfamiliar travel protection.
  • Different kinds of protective covers for opening a savings bank account

You can get additional value by picking an account that gives these advantages. Likewise, a Savings Account offers a passbook, net banking facility, cheque book, debit card, and more.

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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.