Key Advantages of a Savings Account
A bank savings account is one of the most popular and widely used financial instruments for individuals to access and keep their earnings. It is a type of deposit account that is designed to help people save money while earning interest on their deposits. In this article, we will explore some of the key advantages of having a savings account.
Easy access to your money
One of the biggest benefits of having a savings account is that it provides easy access to your money. You can withdraw or transfer funds from your account using various channels such as ATM, mobile banking, and branch visits. With 24x7 access to your funds, you can easily manage your finances and pay your bills, making your life more convenient.
Safety and security
A savings account is one of the safest ways to keep your money. Banks in India are highly regulated, and your deposits are insured up to a certain amount by the Deposit Insurance and Credit Guarantee Corporation (DICGC). This means that in case the bank fails or goes bankrupt, you will get your money back, ensuring the safety and security of your hard-earned savings.
Interest on deposits
Another significant advantage of having a savings account is that it earns interest on your deposits. You can earn an attractive 7% rate of interest* on a Unity Bank savings account (6% upto Rs 1 lac and 7% over Rs 1 lac) with Unity Bank. This means that your money can grow over time, even if you don't actively invest it. The interest earned on your savings account is usually credited to your account at regular intervals, helping you earn passive income.
Encourages saving habits
A savings account also helps to inculcate saving habits among individuals. By keeping your money in a savings account, you are more likely to save money rather than spend it frivolously. Additionally, banks also offer automatic savings plans that allow you to transfer a fixed amount from your checking account to your savings account at regular intervals, making it easier to save money regularly.
Convenience and benefits
Many banks offer additional benefits to their savings account holders, such as free ATM usage, discounted fees on other services, and cashback offers on purchases. Unity Bank provides its customers with phone banking and will soon introduce mobile banking, making it a convenient and cost-effective way to manage your finances.
These features of a savings account make it an essential financial tool that offers many advantages and helps individuals to understand the benefit of savings. It not only provides easy access to your money but also ensures its safety and security while earning interest on your deposits. By developing a savings habit and using the various benefits and services offered by banks, you can effectively manage your finances and achieve your financial goals.
*subject to change