Savings Account: Simple Way to Manage Your Expenses

You have often heard – and maybe also follow – the sage advice of saving money for a rainy day. Money is a useful tool that helps make life comfortable and tick off many goals on your personal bucket list. But saving money is a refined art that takes some skill – and a good savings bank account. Consider the reasons to open a savings account with a good bank:

* Your money remains safe with the bank.

Keeping your money at home is no longer a smart idea. It is better reposed in a savings account that is professionally and securely managed by your bank. Besides you get easy access to your money whenever you wish – transfer money using payment apps, or withdraw cash from the nearest ATM. In fact, your banking app makes it possible to leave your house without carrying your wallet.

* Your savings earn interest from the bank.

The biggest benefit of having a saving account is that the bank pays quarterly interest on the savings deposits. Hence, the more money you deposit in the account, the more you earn on it by way of interest. You can earn 4% savings interest from leading banks in India. Over time, this earning assumes significance when you count how much money you have stowed away.

* There are different savings accounts for different needs.

Leading banks are also offering customisation by way of the savings accounts they offer. Instead of just a couple of account products – the normal account and a zero-balance variant – leading banks are offering as many as 8 different account to suit a variety of savings needs. The most basic zero balance account is recommended if you use your savings account also as a checking account for monthly expenses. You get the same rate of interest on the zero-balance account as other savings accounts.

* The savings corpus comes in handy on a rainy day.

There is a definite fiscal logic dictating savings. Though saving money every month is tough, it inculcates superb financial discipline in you. Over time, it becomes an automatic habit for you to save money from your income, or from a promotion at work, or from cash gifts by relatives. The more money you save, the more comfortable is the nest egg you end up creating for your own future.

* Your savings can start successful investments.

There is no need to keep your money idle in the savings account. Once it accrues to a large amount, you can invest it in a fixed deposit for higher earnings. Fixed deposits offer a higher rate of interest than savings bank accounts, so the capital appreciation is certainly higher on your money.

About This Author

Shaheen Shaikh http://www.adrclinic.co.uk Joined: April 29th, 2018