A savings bank account is one of the most common banking products offered by financial institutions in India. It is the most basic financial instrument that permits you to deposit your money and withdraw the same at any time, all while generating interest on your parking. One of the important features of using a saving account is liquidity. This means you can withdraw your parked funds from your bank account anytime through ATM or cheque. Discussed here are different savings account features you must know to pick the right savings account depending on your financial requirements.
- Easy and quick financial transactions
As initially pointed out, the major purpose of holding a savings bank account is to manage your money i.e., easily deposit, receive, and withdraw funds. Your savings account serves as the base for all your financial transactions and lowers your cash dependency. Such transactions can be quickly performed through banking services such as net banking through facilities like IMPS, RTGS, or NEFT, cheque, ATM card, or cash withdrawal slip. Moreover, for payment of your bills, financial institutions now offer dedicated payment options that permit you to set standing instructions for your utility bill payments like water, electricity, phone, etc.
- Interest earnings
Every saving account variant may it be a regular or instant bank account offers a rate of interest that may range anywhere between 3.50 % and 6.25 % p.a. Note that, the rate may differ from one bank to another as they are dependent on the RBI’s (Reserve Bank of India) decision on repo rates. The interest earnings on your bank account permit you to earn some money on your deposits and slowly grow your savings. Choosing a high-interest earning account can boost your returns and help you meet your short terms financial goals.
Among various banks, IDFC FIRST Bank is known to offer the industry’s best savings account interest rates along with an option of monthly interest credits to amplify your returns. In addition, you can enjoy instant account opening from the comfort of your home through online or mobile banking options.
- ATM facility
Once you open your savings account, financial institutions may provide you with a debit card to easily withdraw your parked funds in the account. This card can be utilised for withdrawing cash via ATMs, initiating online transactions, making payments physically at stores, etc. Note that, to withdraw cash from ATM, you can either find your bank’s ATM branch or even access any other bank’s ATM to make the withdrawal in the case of any financial urgency.
- Cheque and passbook facility
Every saving account has a cheque book and passbook facility that you can opt for while opening an account. The passbook lists all your bank account transactions and your cheque book contain a specific number of cheques, which you must fill out and hand over to the concerned bearer or use the same to withdraw the required funds. Most banks offer a few cheque books free of charge. Ensure to check the facilities that you get with minimal or free of charge to make the most of your savings account.
- Mobile banking and net banking
With the growth and acceptance of technology, the usage of cheques and passbooks has reduced, and the significance of mobile and net banking has simultaneously increased. Every bank offers mobile and net banking facilities when you open a savings account. With these internet banking facilities, you can transfer as well as receive payments by just logging into your bank account through the online platform.
Such online facilities, especially mobile banking tend to make your banking experience smoother. The mobile banking app can be downloaded from App Store or Play Store easily for accessing your bank account anytime. Through this app, you can avail yourself of various services like instant money transfers, view your account statement and balance, make loan EMI, credit card due and insurance premium payments, raise complaints in the case of any issue in your bank account and more.
From safeguarding your funds that you may use anytime to using your parked funds to conduct different financial transactions through online platforms, you can opt for a savings account to meet your different requirements. Today, having a savings bank account is not a want but a need owing to the quick availability of the above-mentioned features in most savings accounts. However, before you hit on the regular or instant account opening option, ensure to compare various financial institutions to zero on the account variant that suits your preference and requirements the most.
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