7 Steps to Consider Before Opening a Savings Account

Before we begin, let’s answer the first question - what is saving account?

A savings bank account is a deposit account opened by individuals which offers interest on the daily balances maintained by the depositor. A savings bank account can be opened by salaried and non- salaried individuals, self-employed businessmen, students and senior citizens. Savings Bank account can also be opened in the name of Government agencies / departments / bodies in respect of subsidies / grants released for implementation of various schemes / programs sponsored by State / Central Government.

If you do not have a savings account, there are several reasons why you should open one soon! We’ve listed down seven reasons that you should consider if you haven’t opened a savings account:

• Having a savings account encourages you to save your earnings and this applies to everyone who may or may not have a regular source of income. It helps you to earn interest on savings and accumulations for future requirements. You earn varying rates of interest on the balance you maintain in your savings bank account and this creates another source of income.

•  You can withdraw your money anytime to meet your requirements almost immediately. If you have a savings account with a particular bank you can access your account and various benefits from any branch of that bank via anywhere banking.

•  Banks issues the account holder a cheque book that can be used to make payments by issuing cheques.

• The bank also issues a passbook or a statement for maintenance of record of your spends and is available for easy reference. These days, most savings accounts can be used for making electronic fund transfers within the accounts of the same bank and also to other banks. You can also use your account to make utility bill payments, online purchases, online tax payments and for shopping through net banking.

• Banks also provide debit cards linked to your savings account that can be used to make payments at points of sale and to withdraw cash from an ATM. The debit card can also be used at other bank ATMs for sudden requirement and the consumer will be subjected to certain charges levied by the secondary bank after withdrawal.

• Having a savings account with a particular bank also entitles you to a host of other services offered by the bank such as personal loan, remittances, credit card etc.

In India, a savings bank account can be conveniently opened by depositing a minimal amount Keeping your money in a savings account is any day better than keeping idle loose cash at home in a safe. If your money is kept in a saving account, you can forget about having to keep it safe and it takes a load off your mind. Besides keeping your money safe, the interest earned on your savings is the biggest reason why people invest their money in a savings account.

While most banks offer an interest of only 4%, Kotak bank savings account offers an interest rate up to 6%. So why let your hard earned money lie idle at home? Invest it in a saving account today!