Things You Can Do With Your Savings Account
Savings accounts are designed to assist you in collecting interest on your savings. Various banks provide varying interest rates on a variety of these accounts. There are, however, many additional things you may do with an account. You can keep your money secure in a savings account while simultaneously generating interest. However, there are a variety of different ways to maximize the value of your account. Your account may now do much more than just store your money. Thanks to financial activities that can be carried out through online platforms.
You may now open a savings account, complete your KYC, and conduct financial transactions all online. You can use your savings bank account to take advantage of a number of additional features, such as those listed above, and save a lot of money on your daily purchases. Let’s have a look at some of the other advantages you can get from your savings account:
Bill payments
You can use your savings account to pay your utility bills, such as water, electricity, and LPG connection bills, as well as DTH subscriptions and mobile phone recharges. All of this may be done quickly and easily using your bank’s mobile app. You may get incredible discounts and cashback on your payments through your account using a debit card or through UPI, in addition to paying all your bills with ease and convenience.
Tax payments
Offline tax payment is so last century. Not to mention the amount of time and effort required. However, you can now pay your taxes directly from your savings account. You can pay many taxes online using your smartphone application or internet banking, including (TCS) tax collected at source, (TDS) tax deducted at source, interest tax, and wealth tax.
Mutual funds investments
It’s never been easier to invest in mutual funds. You can now invest directly in mutual funds and save a substantial sum through section 80-C using your savings bank account. Through your account, you can purchase, redeem, and switch mutual fund schemes. You can also put money into Systematic Investment Plans (SIPs) (SIPs). You can also keep track of your NAV and mutual fund portfolio by using your bank’s app or entering into your online banking account.
Amazing discounts
When it comes to discounts, you may save even more money while shopping. When you pay with your savings account debit card, you can get some great perks whether you’re in a shopping mall or perusing an online shopping site. Additionally, while dining at select restaurants and cafés, you can earn some fantastic cashback and perks. You can even get some great rates by paying with your savings account when purchasing airline tickets or hotel reservations.
Credit cards
You can not only apply for a credit card using your savings account, but you can also make payments online 24 hours a day, seven days a week to avoid getting penalized for not paying your bills on time. You do not need to go to the bank to pay your bills if you submit a demand draft or a check. You can now pay from the convenience of your own home. You may also be eligible to upgrade your credit card provided you keep a sufficient account balance.
A savings account allows you to access your funds at any time and from any location. Just as we carefully handpicked and selected the items we purchase, picking the right account necessitates some investigation to find the one that would best support us.
Here is why it is important to have a savings account
Creates a Corpus in Case of Emergency
During unforeseen monetary crises, savings accounts serve as an emergency fund. Whether it’s a medical emergency, a car repair, or, fund for higher education these accounts has got you covered. The liquidity of these accounts allows you to withdraw the funds you need at any time. A savings account balance keeps you debt-free by allowing you to pay unforeseen needs instead of going for a personal loan.
Easy bill payments
As previously said, this account allows you to pay off all of your bills directly from the account. A savings account can be used to pay credit card bills, utility bills, cellphone and DTH recharges, and so on.
International debit card
If you have a savings account in India, you can convert your debit card from your account to an international debit card. To use abroad, you can upgrade your existing national debit card to an international debit card.
Asset protection
Market volatilities have no effect on the assets you retain in your savings account. When compared to this account, investing your hard-earned money in real estate, bonds, and equities can yield a considerably larger return. However, there is a danger that you will be forced to withdraw your investment. This can be due to unforeseen circumstances, resulting in a lesser return or a loss. Keeping your money in these accounts will protect you from having to incur a loss due to a forced investment withdrawal.
Easy to open and operate the account
A savings account is fairly simple to use. By visiting a bank branch, one can easily open an account. Many banks even allow customers to start a savings account simply going into the bank’s website. They also provide savings account calculator for their customers. These accounts are advantageous to young individuals who wish to learn how a bank works or who want to start saving.
Easier loan repayment
One or more loans are held by the majority of modern professions. Repaying the loan gets significantly easier if you have a savings account. The lender devises a payment technique known as “auto debit”. Under this type of loan repayment, the lender deducts a fixed amount from the borrower’s account. This is one of the advantages of having a savings account. The borrower must have a sufficient amount of funds in his or her bank account.
One of the simplest and safest ways to protect your hard-earned cash is to open a savings account. This account not only protects your money but also pays you interest at a rate of 6% to 7% each year. We can conclude that a savings bank account is a must-have for better financial management after considering all of the factors.
