Savings accounts have always been popular among the masses. They provide a safe avenue to park your excess money till you need to use it. And in today’s world, you never know when you will need a lump sum amount for a personal emergency, an unplanned medical procedure, or other sudden expenses. So, in such times of crisis, having a portion of your funds saved up in your digital savings account can come in handy.
Moreover, maintaining a digital savings account can help you with money management and achieving long-term financial goals. So, let us look at some reasons why keeping money in a savings account is considered safe.
1. Curb Excess Spending
What is your first instinct when you get a bonus? The chances are that you are tempted to spend it, often on unnecessary things. But, by depositing it in a savings account, you can curb your spending urges and hold the money till you need to use it on necessary expenses.
2. Access Your Money Quickly
Unlike other investment avenues like mutual funds, you can access the money in your savings account without any delay. So, it is smart to set up a savings account as an emergency fund.
If you want to save money for a long-term goal such as education or buying a house, you can open a dedicated savings account for that purpose and withdraw the amount once your goal is met.
3. Convenience
Savings accounts keep your money safe without you having to bother about it. The account charges that come with it are also nominal. Even if you are someone who has trouble keeping track of your earnings, you can deposit them in your savings account and remain stress-free.
What’s more, with online savings account facilities, you can check your balance or transfer funds from your digital savings account in seconds via the mobile banking app. No need to visit your bank’s branch or deal with the hassle of maintaining a passbook.
4. Interest earnings
Savings accounts are interest-bearing accounts. They are risk-free, more liquid than term deposits, and yield moderate returns. So, why keep your cash lying around at home when you can deposit it in your savings account and earn interest?
Today, several banks offer competitive interest rates on savings accounts. So, research and compare their interest rates and choose the one that yields the highest returns.
5. Nomination Facility
Savings accounts give you the facility to add nominees. So, even after the unfortunate death of the account holder, the money deposited in your account will remain accessible to those you nominated.
So if you have been saving up for your children’s education, you can add them as nominees, give them control of your money and safeguard their future.
To Sum Up
If you want to be financially savvy, savings accounts are a must-have. They help you track your spending, save up for life’s emergencies, and plan for your future.
Today, opening a digital savings account online with banks like the IndusInd Bank is easy. All you need to do is visit IndusInd Bank’s website, complete the online KYC, and your account will be ready in just a few days – without ever stepping out of the house! What’s more, you can even open a savings account for your child and operate it until they are eligible to manage it independently.
