A bank account is essential when you begin to save money; Indian banks offer a wide range of accounts where you can deposit money and earn interest. And a savings account is one of the most common ways to make future savings for your loved ones. In the section below, we’ll discuss everything you need to know about the savings account. So, let’s get started.

What is a Savings Account?

Now a question might pop up in your mind: What is a savings account ? and what are its benefits? Here is the answer, a savings account is a deposit account that allows you to deposit your money safely and earn decent interest over it. Also, savings accounts offer liquidity, so the amount you deposit can meet your financial requirements. Although savings accounts have some restrictions on fund withdrawals, they generally offer flexibility that is a great choice for short-term investments.

Benefits of a Savings Account

1. A savings account allows you to earn modest interest over your deposited amount without extra effort.
2. Another advantage of a savings account is that it offers more liquidity and transparency than any other way of saving.
3. It can be easily linked to your primary checking account, making it easier to transfer excess cash from your checking account to earn more interest.
4. Investing your money in another way is always subject to market risk. On the other hand, a savings account offers you safety with consistent returns.

Types of Savings Accounts

1.    Traditional Savings Account

These accounts are designed to be a basic savings option and typically do not offer the best savings account rates. Additionally, you may also be subject to a minimum balance fee.

2.    Money Market Savings Account

These accounts offer the features of savings accounts with checking accounts. In other words, you can earn a decent interest and withdraw or purchase using a debit card. However, they may be subject to limited withdrawal restrictions and still offer better interest than traditional accounts. Other than the savings account, you can also check the personal loan app; when looking for a loan.

3.    Corporate Salary Account

This savings account type is a privileged account for employees linked to the corporate institution in both the public and private sectors. Additionally, these accounts can be customized as per the relationship between the corporate and the bank. Also, a salary account offers unlimited transactions from ATMs with an overdraft facility and requires zero balance.

4.    Digital Savings Account

This account is convenient and reduces the effort and time consumed in banking. Additionally, these accounts can be managed through mobile applications and Internet banking, making e-commerce transactions easy.

5.    Women’s Savings Account

This savings account offers immense opportunities for women to save money and also empowers women. Also, these accounts provide a fixed deposit facility and personal accident insurance that allows women to enjoy financial independence with a 0.25% discount on vehicle purchases. Apart from this, these accounts also allow them to adjust their expenses with a sweep facility.

Conclusion

Your savings account must meet your needs and financial requirements. Therefore, choosing a savings account that suits your financial goals and evaluates the interest rate with benefits accompanied is important. Also, review the offers, transactions, and fee charges to maximize benefits from your savings account.