A savings account is the most popular when it comes to storing your money at a financial institution. It is a type of account wherein you can deposit money and earn interests based on your funds. They are most sought after because they are believed to be reliable and safe. If you want to save for some short term goals, we suggest a savings account is the best option for you. It will give you flexibility in terms of withdrawing money from your account. You can also go for a premium savings account, an upgrade to a regular savings account. It will provide you with customizable perks based on your preferences.
Before moving on to why you should choose a savings account, let us have a look at the types.
Types of Savings Account
With the changing needs of the customers belonging to different age groups and work fronts, banks have categorized a few savings account types to cater to those additional demands. Although every bank offers various types of it, these mentioned below are the basic ones.
- Zero-balance savings account
This type of savings account does not demand maintaining the minimum balance requirement of a savings account. It is a good option for students.
- Regular savings account
It is the primary type of savings account, where you need to maintain the minimum balance to keep your account active and so that it does not attract fines.
- Salary account
The name is self-explanatory of the account type. In most cases, companies or organizations directly deposit the monthly salary in this account. This account type, however, has a huge benefit. It is, first of all, a zero-balance account. Secondly, if the salary is not credited in this account for more than two or three months, it automatically turns into a regular savings account. In such a scenario, it also does not require to maintain the minimum balance requirement.
Why Should You Choose A Savings Account?
If you are in a dilemma, we would like to remind you that there are several reasons why you should consider going for a savings account. We have put forth a few points to help you decide why you should choose such an account.
- It has the potential of converting into an emergency fund because, along with paying interests on your deposit, it gives you the ease of access.
- You can quickly transfer funds from other bank accounts using IMPS, NEFT, RTGS, or UPI and vice versa.
- Savings accounts provide various offers and discounts on your expenses.
- With digitalization, internet banking and phone banking facilities will make your financial activities overly comfortable.
Conclusion
A savings account mainly imbibes the quality of saving in you. Whether it is saving money to purchase a car or accumulating funds for a vacation, a savings account is the one to go to. The reason you should choose this type of account is that along with saving money; you are also earning an interest rate based on your deposits. We hope we have been able to help you understand that choosing a savings account is not a bad idea, after all. However, you have to choose which financial institution you would like to open a savings account one based on your needs and requirements.
