Savings accounts offer depositors the opportunity to earn interest on their deposited funds. In addition, banks may offer certain features and benefits to their savings accounts, including access to ATM machines, online and mobile banking, and other services. In fact, now they can open an account online without visiting the bank. Simply put, a savings account could be an ideal place to park your funds and grow your wealth with interest earned.
Here are the 5 most important benefits of a savings account you should know about.
Emergency Fund
An emergency fund is a sum of money you set aside for unexpected expenses or life events such as job loss, medical emergencies, etc. You can use a savings account as an emergency fund to prepare for uncertain times.
A good rule of thumb is to have 3-6 months’ worth of living expenses set aside in an easily accessible account. This way, if you experience a financial setback, you’ll have the funds available to cover your basic needs without relying on credit cards or loans.
Save for Short-Term and Long-Term Goals
A savings account can also help you save for short-term and long-term goals. Whether you’re looking to save for a down payment on a house, new car, or a once-in-a-lifetime vacation, a savings account can help you reach your goal.
If you have a longer-term goal, such as retirement, you can use a savings account to start building your nest egg. Many banks offer special accounts, such as IRAs, which offer tax advantages for retirement savings.
Build Your Credit Score
If you have a salary account with the same bank as your savings account, you may be able to use your savings account as collateral for a line of credit. This can help you build your credit score, which is important for getting loans and other types of financing in the future.
A good credit score can lead to better loan terms, lower interest rates, and even a higher credit limit. By using a savings account to build your credit score, you’ll be better positioned to finance large purchases, such as a car or a home.
No Need for a Minimum Threshold
Banks like IndusInd Bank offer zero balance savings accounts that do not require a minimum threshold. This means that you can open an account with any amount of money and still earn interest on your deposited funds.
Additionally, there are no monthly maintenance fees or other charges associated with these accounts. This makes them an ideal option for those who want to start saving but don’t have much money to deposit.
Easy Opening Process Online
The process of opening a savings account has become easier than ever before. With the advent of online banking, you can open savings account online.
All you need is PAN and Aadhar and an initial deposit to get started in most cases. Once your account is open, you can begin transferring funds from your salary to your savings account.
Final Word
A savings account is a must for you to park your funds safely and grow your wealth. Consider online saving account opening with IndusInd Bank today. The online savings account not only offers a higher interest rate but is also loaded with a number of rewards and benefits.
Interesting Related Article: “