A savings bank account is the first option for almost all of us to keep our money securely in one place. Usually, it is a person’s first interaction with the banking system. Even though a savings bank account does not provide exponential returns to the account holder, it offers several other benefits.
Features of a Savings Bank Account
Features of a Savings Bank Account: A savings bank account is a right place to keep your savings funds. Savings accounts earn you reasonable interest on the deposited money and help you make additional money to accumulate wealth over the years. Banks credit interest returns on the average daily balance in a savings bank account and the interest are credited to your account monthly, quarterly or half-yearly.
Zero-balance savings accounts: Zero-balance savings accounts can help you manage your money effectively. Most bank accounts require a minimum balance and charge penalty charges when that balance is not maintained. You can open an online bank account with a zero balance to avoid these charges and save yourself from unnecessary expenses. These accounts have no minimum balance requirements and allow you to withdraw cash as long as you’ve funds available.
Withdrawal and payment facility with savings accounts:- You can withdraw money or make payments using your savings account. You can withdraw the funds in physical form or liquidate them using your debit card. When you open a savings account, you’ll get a debit card with which you can withdraw cash. These accounts are the best option to park funds that can be used for emergency purposes. The debit card offered with a savings account can also help the account holder earn reward points, cashback, and shopping discounts.
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The facility of internet banking and phone banking:- Savings accounts offer internet banking and phone banking facilities to the customers. Customers can transfer money instantly and seamlessly from one account to another. They can also make UPI payments with ease. Account holders can view the amount available or raise service requests related to their accounts using it.
Safe avenue for funds:- Ours is a safe avenue for funds. The primary reason why people open a savings account with us is that their money stays safe in the savings account until they withdraw it. The amount you deposit in a savings account is insured up to Rs. 1 Lakh by the DICGC (Deposit Insurance and Credit Guarantee Corporation).
Special value-added services:- Savers, you will enjoy the convenience of ATM transactions and debit cards for your savings account. But that’s not all. Many banks also offer additional benefits, such as accident/medical insurance and travel insurance which you can use to get more from your account.
The best bank for savings account, unlike CDs and bonds, is where you have to invest a large amount of money for a long duration. You can open a savings account with as little as $1 and still earn interest on it. This is another great way to use your money lying idle at home to earn from them. The interest earned on a savings account helps with additional income while keeping the money safe in the bank account