Azadi ka Amrit Mahatsav

Why to have a savings account?

14 Nov 2022,

01:30 PM IST

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One of the most common types of bank accounts that one might open is a savings account. It is a single account that serves a variety of functions. A variety of savings account kinds are available for usage with various needs. This is many people's first experience with the banking and financial systems.

People frequently refer to stocks, bonds, real estate, precious metals, or foreign money when they discuss investing. These investment options come with drawbacks, like risk, expensive minimum investments, and difficult money access, but they can provide a significant long-term return on your money. Yet savings accounts are reliable. Here is how:

  • Instant Access

    The ease with which savings accounts can be accessed when you need money is one of its best features. Regardless of how effectively you manage your finances, it is always possible that your financial strategy won't be successful. You could be concerned about how you'll pay the bills the following month after losing your work or experiencing a major medical emergency. Having an emergency fund on hand is the best defence against these occurrences.
    Unexpected events can be managed without falling into debt if you have some extra cash on hand, three to six months' worth of your income is a good place to start. An excellent tool for this is a savings account because you can get your money straight soon.

  • Safe and easy to start

    Opening a savings account is fairly simple. It only requires completing a form, or simply spending a short amount of time online, and providing your initial deposit. This deposit doesn’t need to be substantial. The normal minimum balance for a savings account is from zero to five thousand rupees (INR). Before creating a new account, be sure to ascertain what the minimum is as it will vary between banks. Additionally, be sure to find out if there are any limitations for accounts with less than the required minimum amount.

  • Interest that Works for You

    By maintaining money in a savings account, you'll accrue interest over time. You'll be motivated to keep saving if you can see your money increase in a savings account. Additionally, interest will accrue in your savings account the longer it is open and the more money you have in it. This indicates that after some years of consistently putting funds into it, you will notice a greater portion coming from interest. When choosing which bank to create an account with, be sure to compare rates as they differ between institutions. You will receive more money more quickly at a higher rate.

Savings accounts are a secure place to keep money set aside for the future. While investing money can help it grow, there is a risk involved when buying stocks or mutual funds. Savings accounts provide security and a steady return on investment. Opening a savings account with the Bank of Maharashtra (BoM) offers fantastic opportunities. As far as investing platforms go, BoM is among the most reputable and trustworthy Natinalized Bank. Here are a few features and benefits:

  • The account holder(s) may designate standing instructions for the transfer of funds from the account to any other account(s), the payment of taxes, loan installments, insurance premiums, telephone bills, etc. Charges that apply are listed in the Service Charges Schedule, which is accessible at every branch and online at the bank's website.
  • The options for SMS banking, mobile banking, and internet banking are accessible.
  • Free Mahabank Rupay debit card or ATM.
  • Up to Rs 5.00 Lac in deposit insurance coverage.