A Savings Account is often considered the most popular Bank Account to consider. It is a basic Bank Account that you can open with a bank and use for various purposes. Here is a guide on Savings Accounts and the key features of such an account.
About Savings Accounts
A Savings Account is a Bank Account that lets you store money while allowing you to withdraw funds whenever required. When you deposit money in this account, you can also earn interest on the balance. Almost all banks offer such an account. Besides this, you can open a Savings Bank Account online and offline, depending on your preferences.
The aim of this Bank Account is to encourage people to save money and provide them with a safe and easily accessible place to store the funds. Since it enables you to deposit your money securely, you need not worry about carrying cash everywhere or keeping your funds safe from theft or losses.
Key features
The important features of Savings Accounts include the following:
- Let’s you earn interest
As mentioned, banks offer interest when you deposit money in your Savings Account. The Savings Account interest rates decide the returns you can earn. This rate usually varies across banks and depends on the repo and reverse repo rates determined by the RBI. It could also vary based on the balance you hold in your Savings Accounts. This interest income allows you to grow your savings gradually over time.
- Allows easy transactions
A Savings Account lets you send and receive money. It acts as a base for your financial transactions. It also reduces the need for cash. You can use such a Bank Account to pay your utility bills and send money directly to a beneficiary’s account. You can also carry out transactions using Net Banking, via the ATM or Debit Card offered by your bank, or utilising cheques.
- Offers Online Banking services
You can easily opt for Online Banking facilities with your Savings Bank Account and log in to your Bank Account online. Once you log in, you can use the facilities to do transactions online. For example, you can send and receive money, invest in stocks, pay your bills, order a chequebook, and more. You can access these facilities from anywhere, removing the requirement to visit your bank in person.
- Gives access to a Debit Card
When you opt for a Savings Account, you generally get access to a Debit Card. This enables you to remove cash from ATMs. A Debit Card also lets you make payments online and for purchases offline.
Conclusion
Now that you are aware of the key characteristics of a Savings Account, you can easily opt for such an account to save money and carry out various transactions.
