What are the advantages of a Saving Account?
Savings Accounts come with certain benefits. And banks are eager to help you, the account holder, to get the most out of your savings, often providing a lot of features for every different type of Savings Account, one of which you might choose. Let us examine the advantages of a Savings Account.
- Keep Your Money Safe
The simplest way for you to keep your money safe is to keep it in a Savings Account at a bank. If you keep a high quantity of cash, it is more likely to get stolen, misplaced, or even damaged due to some calamity such as a fire.
- Convenient Money Management
A Savings Account allows for convenient money management – you can make and receive payments as well as transfer funds from one account to another. Further, you can access your money via ATM services.
While Savings Account’s purpose is to encourage savings, it is also a good place to keep your money aside in case of emergencies. Unlike a Fixed Deposit, the money is not locked in for a fixed period of time and can be accessed whenever required.
- Bill Payments
You can use your Savings Account to pay your Credit Card bills, as well as bills for utilities such as electricity and water supply. You can also pay for day-to-day requirements such as a mobile recharge.
- First Step to Savings
A Savings Account represents a first step on your path to making savings and investments. This is often considered the basic unit required to begin down that route.
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- Nominal interest rates
Most banks offer an interest rate slightly higher than the rate of inflation. While this is seen as a way of letting your money grow over time, the actual benefit of this is that tour money’s real value remains stable.
There are certain things you need to keep in mind when opening a Savings Account though. The liquidity of the Savings Account is too difficult a lure for some people. So, if you are somebody who may feel too tempted to constantly access the funds in your Savings Account, then you should exercise control. Another thing to consider is that if you want to keep your stable and untouched for a fixed duration of time, then a Fixed Deposit might be the better option for you.
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*The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.