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5 reasons why your money is safe in your savings account

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A savings account is a basic bank account for many. Until you plan to put your finances to other use, keeping them in your bank account is the go-to option. A savings account may not be offering the best returns in the market, but it is definitely a safe avenue to invest in.

What makes a savings account safe?

A savings bank account is a deposit account held at a bank. You get paid additional interest on the money deposited in this account. This money is not invested anywhere, making it the safest option for most individuals. The funds stay where they are unless withdrawn or used for transactions. A certain part of your funds also gets insured by a subsidiary of the RBI.

For individuals interested in modest returns, a savings account is the safest place to keep your money.

Here are some more reasons why you should keep your money safe in a savings account:

Accessibility

You may have money invested in avenues that could yield better returns than what a savings account can do for you. However, money in your savings account is always accessible, unlike a fixed deposit or a mutual fund investment. You can directly access your money without any delay.

Even minors can use a savings account. Parents or guardians can operate it until the account holder is legally eligible to take control.

Low Maintenance

Savings accounts are meant for your money to be there without you having to bother about it. The charges, penalties, and fees that come with it are comparatively low. Even a low-earning individual, someone who has just started working, or someone who finds it difficult [AD1] to deal with money, can handle it all by themselves.

Ease of operation

Savings accounts generally come with a passbook and chequebook to enable transactions and maintenance of funds. In addition to this, most banks offer a debit card, as well as the ease of phone and internet banking. All this not only makes it easy to operate and transact with this account, it also ensures that you are in control of it.

Minimum Balance

Depending on your earnings, you can opt for an account that offers zero minimum balance, or an amount you are comfortable with. The amount you gain over this base amount can then be put to use while you still have a secure amount in the bank.

Family benefits

Your savings account and the money in it will remain accessible to your family or the people you have nominated even after you are gone. As a result, irrespective of where else your money has been secured, your family’s future is taken care of. Also, different types of savings accounts can be explored to choose the ones that will offer the maximum benefits to you and your family.

A savings account might come across as just a place to keep your money, but it is fundamental. It is also one of the safest ways to invest and store your money. While choosing one, ensure that your expectations are fulfilled and apply for a savings account today.

 

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.

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