Savings accounts are an important element of your financial planning. They can help you save money, pay off debt, or even provide a bit of stability during emergencies. But saving has never been so easy! Savings accounts have evolved over the years to offer features that make them more versatile than ever before. If you’re not sure about the features of savings accounts, then this blog is for you! Let us look at what they are and why they’re important in today’s financial landscape.
Important Features of Savings Bank Account
- Rate of Interest:
Banks provide you with a rate of interest on the money you deposit in a savings account. It simply implies that the more money you put in, the more money you get back in interest. However, savings account interest rates vary from bank to bank. The banking policies set by RBI also impacts it.
- The Flexibility of Withdrawal:
You can withdraw a specific amount of money from your bank at any moment. As part of their welcome package, they include a Debit Card that may be used to withdraw money from ATMs. It should be noted that the bank sets a withdrawal limit, which you may modify by updating the relevant settings on the bank’s app online or visiting your branch offline.
Note: If you withdraw money from another bank’s ATM, you may be charged a modest fee after a specific number of transactions.
- Chequebook and Passbook:
Chequebook and passbook are two of the most popular savings account features. The former is given to you when you submit a request and allows you to withdraw or transfer funds. The latter is included in the welcome package and allows you to track every transaction initiated from your savings account.
E-banking allows you to do transactions online. You may use it to make payments, receive money, pay bills, invest, and pretty much do anything else online.
- Easy Exit and Account Tenure:
The maximum amount of time you may manage your savings account is unlimited. That means you can work on it for as long as you want and close it anytime you want. To terminate your savings account, all you have to do is contact your bank.
Note: If an account isn’t regulated for two months, the bank considers it inactive. To reactivate your inactive account, you must contact your bank. You must first activate an inactive account before closing it.
- No Age Limit:
A savings account has no restrictions on the account holder’s age. It also offers additional perks based on the account type. Savings accounts for minors, salary savings accounts, and senior citizen savings accounts each have their own set of advantages.
- Minimum Cash Requirement:
Some banks have a savings account minimum balance requirement. Account holders are responsible for maintaining the limit and must pay the penalty if the balance goes below the specified amount.
The bank will inform you of the minimum cash requirement before you begin the account creation procedure. If you want to open an account with no restrictions, go with a salary savings account or a zero-savings account.
As mentioned before, a savings bank account is one of the most basic types of bank accounts that allow users to save money and earn interest on the deposited amount. A savings account can be opened at any time with some minimum requirements like an opening deposit. The above-mentioned features prove why it is so important to have one. The flexibility to withdraw it anytime is also a benefit that makes it one of the best investment options. However, before you open a savings account for yourself, make sure you compare the available options.
Although nearly every bank offers these services, the level of benefit varies from one bank to the next. Some offer a high interest rate, while some offer a high withdrawal limit. Make sure you are choosing the one best suited for your finances.
A savings account may appear basic and boring, yet it is an important component of many people’s lives. Open a savings account now!