Savings account is a financial instrument held with numerous banks, wherein accountholders deposit money in their accounts and earn modest interests on it. People prefer these accounts because they are easy to use, safe and reliable. They allow unlimited deposits and enable withdrawals whenever needed. The savings account interest rates offered by various private, public and small finance banks ranges between 2.50% p.a. to 8.00% p.a.
The purpose of a savings account is to provide a medium for people to stash money that they do not intend to use regularly in a safe place. Accountholders earn decent interest on the amount deposited in their account at a pre-decided rate that changes from time to time. The interest is paid on a timely basis can be from monthly, quarterly, or biannually to yearly. The best thing about a savings account is that one can withdraw total funds almost immediately and use it as and when required.