A Savings Account offers a medium to store money you do not intend to use regularly in a secure place. It is the most basic Bank Account available to customers and lets you deposit your money and earn interest at a particular rate. However, this account is more than just a safe place to store your money. Instead, it comes with a host of different features.
These help you make the most of your savings and reach your economic goals. Hence, you need to understand the various characteristics of this account. Let us explore the different features of a Savings Account. This will help you make an informed decision:
Interest rates
Different banks offer varied interest rates on their Bank Account. The rate of interest is the rate at which money is paid by your bank on the amount you deposit in your account. Interest rates could range from 3% to 7% for regular customers.
Flexibility of withdrawal
Banks usually let you withdraw your funds from your Savings Account anytime. However, your bank may set limits on how often you can make withdrawals. There might also be a cap on how much money you can withdraw.
Offers a Debit Card
Most Savings Accounts offer a Debit Card when you open them. This card lets you withdraw money from ATMs. It also lets you make online and offline payments.
Account tenure
Savings Accounts can be maintained for as long as you want. There is no time limit. However, if you do not use your account for two or more years, your bank may classify it as inactive.
Chequebook facility
Most Savings Accounts offer a chequebook facility when you open an account. This chequebook enables you to withdraw funds from your account.
Minimum balance requirements
Many banks need you to maintain a minimum balance in your Savings Account. If you fail to maintain this specific amount, it results in a a penalty. However, some Savings Accounts do not have a minimum balance requirement. Hence, if you do not want the trouble of maintaining a minimum average balance, you can open such an account.
For example, you can opt for a Zero-Balance Account opening online. Such an account offers individuals basic banking services. However, you need not worry about maintaining a specific balance or paying a penalty for doing so.
Online Banking
When you open a Savings Account, you can conduct transactions online. You could use Online Banking to send and receive money, pay your bills, invest in stocks, and more.
Conclusion
The benefits of a Savings Account go beyond a mere repository of funds. Instead, it works as a valuable tool that helps you achieve your economic goals and allows you to create a secure future. So, browse through the various types and choose one that best matches your needs
