8 Benefits of Savings Accounts

Note: The information on this page may not be updated. Kindly refer to the bank website to check the latest information.

You Need a Savings Account – check out why?

What do you do you with the money left after paying off your fixed monthly expenditure (bills, premiums, EMIs and more)? Do you invest it in the stock market, retirement funds, mutual funds, recurring deposits, etc.? Does this leave you with limited or no liquid cash? Withdrawing cash from investment accounts is a tedious process, involving deductions and penalties. You can borrow money through credit cards, but even that comes at an interest rate.

Do you then wonder from where you will arrange money for emergencies?

The answer is simple: savings accounts. These accounts are a necessary tool, offering ready access to cash at all times. Despite the fact that they offer low interest rates, you cannot do without a savings account. It’s time we changed our perception of a “thankless” savings account. Let’s see how banks have made them an attractive product.

Promotional offers on savings accounts

Apart from the usual saving and interest rate benefits, banks have come up with extra discounts and advantages. Here are some of the popular ones:

1. Discounts on lockers– Banks are offering 15% to 30% discounts on locker fee to account holders who maintain the minimum quarterly balance in their accounts.
2. Family account benefit– Banks allow family members who have an account in the same bank to combine their deposits and increase their corpus.
3. Insurance– Most banks also offer life insurance, and accident hospitalization and death cover, on opening a savings account. All you need to do is maintain your account balance and pay premiums regularly.
4. In addition, banks insure your debit card against instances of misuse or theft, under the purchase protection clause.
5. Education insurance for children- You can link your child’s account with your savings account in the same bank. This will make your child eligible for an education insurance cover. Further, you can monitor your child’s spend and regulate their account.
6. Higher interest rate– Many banks offer an interest rate of 6%–7% on savings accounts, yielding  better returns than most Fixed Deposit schemes.
7. Discount on gold– A rebate of 2% to 5% is available on purchasing gold coins from banks, especially for customers with large account balances.
8. Cash withdrawal facility– ATM service lets you withdraw cash from anywhere in India, at any given time.
9. International debit card– You can convert your debit card into an international debit card and use it for transactions made overseas.

So, what are you waiting for? Get cracking on planning for your savings accounts!