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.
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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.
Easily Accessible
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.
Security
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.
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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.
Emergency Fund
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.
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Target Saving
For huge expenses like home remodeling, vacations, vehicle, down payment for a property, etc requires money.
Financial Habit
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.
Additional Benefits
There are multiple benefits in having and maintaining a savings account. These benefits are the provision of locker, debit card, cheque book, etc.
Savings account fulfills your long term financial goals with low risk. Its always the money in a savings account that will help us in affording education, luxury items, repairs, etc. If an individual does not have any financial goal, it is still important to maintain a savings account which might help him/her for future use or in emergencies. Maintaining the savings account is a healthy habit to lead a safe and secure lifestyle.
About the author
Anala is a young and spunky guru on financial matters, who tells you like it is; everything from managing debt to managing savings accounts. While books and movies keep her brain ticking, Anala pursues swimming and dancing to keep fit. A lifelong explorer and learner, Anala believes in giving back, and volunteers with the Bright Spark Education program at the NGO Youngistaan Foundation, where she opens up children's minds to the innumerable possibilities of a happy and successful life!
