Why is a Savings Account the First Step Towards a Secure Future

Personal

5 min read | 5 months ago

We all love the feeling of being secure and comfortable. Our hard-earned money, of course, is one of the biggest stimulants behind both these feelings (as we will all agree). But there is no point if we do not know where to keep it properly. This is where a savings account comes into the picture. It is a sheer necessity for managing money, carrying out daily transactions, and for receiving income/salaries. Thus, a savings account can certainly be the first step towards creating a more secure future for yourself. Let us take a look at its importance and some other crucial aspects in this article.

Why a Savings Account is Important

A savings account is a powerful tool to achieve financial security. It is a bank account that permits individuals to deposit money and earn interest on the same. The key benefits of savings accounts are as follows:

Interest: You’ll earn passive income by way of the interest that you get from the bank on the money in your savings account.

Emergency fund: You can use your savings account to build a corpus over time, to cover emergency needs and other financial commitments.

Save for the future: You can use a savings account to strategically accumulate money for future requirements, such as your retirement, children’s education, and so on.

A savings account can provide a foundation for long-term financial security. By regularly depositing money into a savings account, individuals can develop a savings habit and start building wealth for the long haul.

Types of Savings Accounts Available

Do you want to get the most out of your savings? Then choosing the right savings account is undoubtedly important. Here’s how to do it.

1. Interest Rates: One of the most important factors to consider is the bank savings account interest rate - after all, you want your money to earn as much as possible. Look for a savings account with a high-interest ratethere are no two ways about it.

2. Fees: In addition to interest rates, it's also important to check for any fees associated with the savings account. Some accounts may have maintenance or withdrawal fees that can eat into your earnings. Also note fees for account statements and other banking services.

3. Accessibility: You want to be able to access your funds easily and conveniently from anywhere and anytime. Hence, look for an account that offers online and mobile banking, along with smooth digital transactions.

Conclusion

As they say, a penny saved is a penny earned and in this case, you should keep your money securely in a savings account. Several banks like Unity Small Finance Bank offer high interest rates on these accounts, while providing several other value-added services and features in turn. Hence, if you haven’t set up a savings account yet, do not delay it anymore; take your first step towards a better future today.

FAQs

1. Why should I have a savings account?

A savings account is a great way to start building a financial safety net. It allows you to set aside money for emergencies, unexpected bills, or future goals. It also offers interest, which means your money will grow over time. Therefore, even if you want to save money for your children, a child savings account would be highly useful.

2. What are the benefits of having a savings account?

The benefits of having a savings account include having a safe place to store your money, earning interest on your savings, and having easy access to cash in case of an emergency.

3. How much money should I keep in my savings account?

The amount of money you should keep in your savings account depends on your financial goals, income, expenses, and other factors. However, as a general rule, you should keep money above the AMB (average minimum balance) limit. It is usually Rs.5-10,000 for most accounts.

About Unity Small Finance Bank

Unity Small Finance Bank is committed to making banking simpler and more accessible for everyone. Our services include Savings Account, NRI account, Current Account, Fixed Deposits, and Personal Loans offering flexible tenures and attractive interest rates. We also offer financing options like MSME Loans and Microfinance to support businesses and underserved communities. Learn more about Unity Small Finance Bank here.