Why a savings account is better than stacking up cash at home

benefits of savings bank account

A savings account offers a safe place to keep your money. Additionally, there are other benefits of a savings account that can be used for financial management.

We give you a few reasons why you should keep your funds in a savings account:

Helps you save more


The value of money may decrease with inflation. Savings accounts offer good interest rates. This can add to your savings and counter this devaluation.

Entitles you to a tax benefit


Another advantage of a savings account is the tax benefit it offers. You can claim a tax deduction on the interest earned from the account under Section 80TTA of the Income Tax Act.

Inculcates financial discipline


As you know, savings accounts offer an attractive rate of interest. Thus, they can help your money grow. This, in turn, can motivate you to save more. It also helps inculcate the habit of saving regularly.

Facilitates tracking of expenses


One of the best things about a savings account is that you can keep tabs on your money. Every transaction that you make using the savings account can be tracked. You can view periodic statements or check the latest transactions online. In this manner, you can keep track of your spending.

Helps meet your liquidity needs


You can withdraw money from your account at any time. The money in your account can be used for short-term goals, emergencies, paying online bills, and everyday expenses.

Helps secure your money


Savings accounts are perhaps one of the safest financial instruments for keeping your money. They are safer than other market instruments which invest your money and give you returns. Also, they ensure the physical safety of your money.

There are various financial instruments where you can park your money, but a savings account offers you a good balance of liquidity and returns. Also, you do not have to visit the bank to open an account; you can easily open a savings account online.

IDFC FIRST Bank offers different types of savings accounts with competitive interest rates, minimal charges, and free multiple fund transfers. Also, you get to benefit from cashbacks on movie tickets, airport lounge access, and complimentary personal accident insurance. Start building your wealth with a savings account today.