What is a Savings account? Let’s see briefly.
A savings account is a deposit account designed to hold money. Allowing you to write a check, or make purchases and ATM withdrawals.
A savings account is the most basic bank account available. It is an account that allows your finances. The funds are available to be withdrawn at any time.
Features of Savings Account:
- A savings account comes with a passbook and cheque book feature.
- You can receive payments and make payments from your savings accounts.
- Auto debits and auto credits can be set up from your savings accounts.
- Savings bank account holders can access internet banking and mobile banking for their needs.
- Banks offer ATM cum debit cards to savings bank account holders.
- A savings bank account earns low interest rate but allows the customer the freedom to withdraw funds at any time subject to a limit on monthly withdrawals.
- It is possible to pay bills from your savings account
- Banks also send transaction alerts to their customers via SMS and email as a part of SMS banking services.
What are the Benefits of a Savings Account?
While a savings account has a lot of utility, it earns interest at 3.5% to 6% per annum.
Here are some of the benefits of having a savings account:
Liquidity
One of the benefits of opening a savings account is that it offers you liquidity.
Safety of Funds
A savings bank account is a safe avenue to keep your funds rather than keeping it on hand where it is susceptible to get lost or stolen. account where the instalment will get debited from the savings bank account.
Convenient Fund Transfers
It is extremely simple to make fund transfers from a savings account. There are different modes of a fund transfer which are easily available in both internet banking and mobile banking.
A savings bank account holder can transfer funds using NEFT, RTGS, IMPS and UPI.
Joint Accounts
There are benefits of a joint savings account. Having a joint account provides greater flexibility since all the joint holders can sign cheques and operate the bank account. It makes it easy to track spends and incomes.
A joint account can be maintained for household incomes and expenses which is excellent for financial planning.
Apply for your savings account in Pride society for maximum benefits.
