Build your emergency fund with some of the best savings accounts

We are sure you have heard of the saying "save for a rainy day". It's a simple reminder that financial emergencies can happen unexpectedly, and it's always best to be prepared. A financial safety net can ease the burden during tough times, whether a medical emergency, unexpected home repair, or a sudden job loss. That's why having a solid savings plan is crucial, and finding the best savings account to support your needs can make all the difference.

Why is it important to save for a rainy day?
 

Emergencies can happen at any time and may come with unexpected costs. You may need money to pay medical bills, rent, or for other essential expenses. Understanding the importance of saving early in your career can help you take care of emergencies better and prevent you from going into debt or losing your financial stability.

Tips for saving for a rainy day
 

Creating a savings plan can seem overwhelming, but there are a few simple steps that you can follow to get started - 

· Set a savings goal 
 

 Determine how much you want to save and by when. Having a specific goal can motivate you to save and make it easier to track your progress.

· Start small 
 

 You can save a small sum of money at a time. Starting with a small amount, as low as Rs 500, and gradually increasing it can make saving seem less daunting.

· Cut expenses 
 

 Look for ways to cut your expenses, such as cooking at home instead of dining out often or cancelling subscriptions you uon't use.

· Automate savings 
 

 Set up automatic monthly transfers from your salary account to your savings account. This can make saving easier and more consistent.

Also read - How to earn high interest on your savings account?

How can the best savings account help?
 

Here are five features to look for in the best savings account -

· Interest rates
 

Saving account interest rate is one of the main benefits of opening a savings account. The interest rate is the money the bank pays you for keeping your money in the account. The higher the interest rate, the more funds you can earn. Looking for the best savings account with a competitive interest rate is important to ensure your money grows over time.

Compounding interest is another benefit of a savings account that can make a difference in the long run. 

Here’s how it helps - if you have a savings account with an interest of 5% per annum and deposit Rs 10,000 in it, you will earn Rs 500 in interest after one year. However, if you let that interest accrue and earn interest itself, through monthly compounding, then after ten years, you will have Rs 16,386 instead of Rs 15,000.

· Fees and charges
 

Some banks charge fees for maintaining the account or using certain banking features, such as withdrawing money from an  ATM or transferring money online However, IDFC FIRST Bank offers zero fee banking, meaning you can enjoy several banking services without transaction fees.

· Accessibility and convenience
 

Accessibility and convenience are essential factors to consider when choosing the best savings account. Look for a bank with a wide network of branches, ATMs, and online and mobile banking features to make it easier to access and manage your money. Additionally, check customer service availability to get help when needed.

Minimum balance requirements
 

Many banks require a savings account minimum balance to be maintained per month. It's important to check the minimum balance required before opening an account to avoid penalties.

· Safety and security
 

Finally, safety and security are critical for your money. Choose a bank with robust security measures to ensure your money is safe. Also, ensure that the bank is regulated by the Reserve Bank of India (RBI) to guarantee the safety of your funds.

Also read – Zero-fee banking: The next big thing in savings accounts

Conclusion
 

Choosing the best savings account in India is crucial to ensure you can save money effectively and reap maximum benefits. With online saving account opening, it is now easier than ever to open an account and start saving today.

IDFC FIRST Bank has simplified choosing a savings account by offering an unmatched banking experience. With our savings account, you can avail of a wide range of banking features, including user-friendly UPI and mobile banking, a lucrative savings account interest rate of up to 7%, free personal accident cover, and numerous other benefits. Click here to apply now!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.