For many people, opening a Savings Bank Account is often the first interaction they have with the banking system. Such an account is also the most popular Bank Account. Today, there are varieties of Savings Accounts you can choose from. However, if you are wondering about the facilities a Savings Account offers, consider this guide.
Overview of a Savings Account
A Savings Account is offered at all banks. It lets you deposit your idle funds and use them as and when required. You also earn interest on the balance you maintain in such an account. Different banks usually offer varying interest rates. Hence, it is a good idea to compare the rates and terms of multiple banks and choose a high-interest Savings Account. It allows you to enjoy a higher income on your savings.
Facilities offered by the account
Opening a Savings Account can offer multiple benefits:
- Easy digital payments
You can use your Savings Account to send and receive money. To make digital payments, you can efficiently consider Online Banking facilities. You can also use the Unified Payments Interface to complete online transactions. This keeps you from the hassle of carrying cash with you all the time.
- Access to ATM facilities
If you need to withdraw cash, you can do so from your Savings Bank by using an ATM. You can either use the ATM of your bank or access your account from the ATM of another bank. For this, you only need your Debit Card.
- Debit Cards
Banks usually provide an ATM or Debit Card when you open a Savings Account. You can use this to access your account and withdraw cash from it. You can also use it to make payments at physical stores or through an online payment gateway.
- Sweep-in facilities
When you have a substantial amount in your Savings Account, you can opt for an Auto-Sweep facility. This simple feature lets you transfer excess funds lying in your Savings Account to a Fixed Deposit. This lets you earn higher interest on the surplus sum available in your account. Set a monetary limit and link your Savings Account to your FD. Once your balance goes beyond the limit, the auto-sweep facility will kick in.
- Bill payments
Your Savings Account lets you automate the payment of your monthly bills. This lets you pay your utility bills, such as electricity bills, mobile phone bills, etc., directly from your account.
- Insurance
A maximum of Rs. 5 lakh in your Savings Account is insured by the DICGC. Certain Savings Accounts may also offer Life Insurance for the account holder.
Conclusion
A Savings Account may seem plain and simple. However, it can offer several benefits and become an essential part of many lives.
