What Is The Importance Of a Savings Account, and Why Should You Have One?

Whether you are a student, a housewife, a working individual, or a retired person, savings from an integral part of our life, and it is an important habit that one must inculcate. Savings help us organize our personal finances for future purposes. The most effortless and easiest way of incorporating the practice of savings in your routine is by opening a Savings Account.

A Savings Account is a facility extended by banks and credit unions for their customers. The money that is kept in a savings account earns interest annually or on a monthly basis, thereby offering a reliable source of income. Thus, a savings account is one of the most trusted and popular forms of bank accounts and is highly sought after by individuals due to its convenience. You should also compare savings account and consider the facilities offered. If you are still skeptical about why you should open a savings account, here are the top ten reasons that justify why it is important to have a savings account. 

• •  Helps you plan your child’s financial future 

The minimum eligibility to open a savings account is that one needs to be above 18 years of age. However, several banks allow you to open an account for minors. By opening a Kids Savings Account, you can help your child understand the basics of operating a bank account, and it will also help to secure your child’s future, benefiting your child in the long run.

•  Multiple facilities offered

Savings Accounts often come with several useful facilities and additional benefits that enable the account holders to conduct transactions easily. Some of the basic facilities available with a Savings Account include a passbook, a cheque-book, internet banking facilities, a debit card, insurance facilities, and other benefits. If you do not have a Savings Account already, it time you open one now to avail the benefits offered.

•  Safety and Security

The best reason to keep your savings account is safety. When you open a savings account, it holds your cash in a protected spot that can be your bank or credit union. Money that is outside of the bank can get stolen or perhaps get damaged in a fire. However, when the federal government insures your savings, you evade the danger of losing money if your bank or credit union fails.

•  Digital Banking Services

With digital banking services, the attractiveness of a Savings Account has increased considerably. With a Savings Account, you can avail several digital banking facilities such as Internet banking, NEFT, IMPS, UPI, and so on. This allows you to easily operate your account and does away with the need to visit the bank branch.

•  The Benefit of Government Schemes 

There are several savings schemes for the girl child, senior citizens, and so on issued by the government. In order to avail of the benefits of these government schemes, one needs to open a Savings Account. 

•  Interest Income

The spare cash left in your home is not going to generate any income. Instead, it will only tempt you to spend more. You can keep this money in your savings account as it will keep your money safe and make little additions to the amount every month in the form of interest.

•  Send and Receive Payments

Having a Savings Account means that you no longer need to go to the bank or to someone’s place to make or receive a payment. You can directly make the payment to the beneficiary’s bank account or receive the payment in your account according to your convenience.

•  Financial Planning

Having a Savings Account can actually help you inculcate the habit of saving. It allows you to plan your finances and investments properly. 

•  No Need to Carry Cash

Carrying a lump-sum amount on the go can be risky and unsafe. However, with the facility of a Debit Card offered by all savings account, you can easily make purchases without carrying cash. Additionally, there are various offers and discounts available on making payments through Debit Cards that will enhance your shopping experience. 

• Keep track of your Spendings 

Tracking your expenses involves identifying your spendings throughout the month, and it is an essential activity that one should ideally repeat every month. However, it is often easier said than done, and if you are using cash for making payments, it becomes very difficult to keep a record of the same. But having a Savings Account means that all your receipts and payments are properly recorded. This will help you keep track of your spendings and help you manage your finances well.