How to help your domestic helper on financial inclusion?

Having a savings account is the first step an individual can take to become financially independent. A large percentage of the Indian domestic force is not part of the banking system either because they find it intimidating or confusing or lack the proper documents. Becoming a formal part of the economy is the right step towards prosperity and financial inclusion. To this end, as responsible members of the economy, encouraging your house help, driver or other help to open savings account can make a world of difference. And it can all begin with a simple discussion.

1. Enlighten the Need for Savings:

It is possible that your domestic help doesn’t diligently save money or simply hands over their earnings to the head of the family. Savings for a family and an individual are essential. You can explain to them how their money is secure in a bank and how it is available to withdraw at will. Savings can be used for more considerable expenses in the future, planned or unplanned, and will insulate them from financial shocks due to health or other emergencies. Moreover, money kept in a savings account will earn interest, thus increasing their income.

2. Explain How a Savings Account Works:

If they are sceptical of or intimidated by banks, you could explain how a savings account works. Understanding the simplicity and advantages of a savings account will make them more comfortable opening one. A savings account is a simple deposit account wherein you keep your money in a bank and are free to withdraw it at will, subject to certain restrictions. You earn interest on your monthly balance and are given facilities like a debit card, chequebook, and internet banking.

3. Guide Them Through the Process:

There is a genuine possibility that your domestic help will feel uncomfortable undergoing the process of opening a savings account. With IDFC FIRST Bank, they can open a savings account without having to visit a branch. With a fully digital application process, you can help them open a bank account right from your home. 

4. Highlight the Pros of an IDFC FIRST Bank Account:

An IDFC FIRST Bank Savings Account is one of the best ways to introduce your domestic help to the wonders of banking. With interest offered up to 7% per annum compounded monthly, free and unlimited ATM withdrawals, and bundled personal accident insurance cover, these savings accounts offer more than just a safe place to park their hard-earned income. 

Your domestic help can build a better financial future for themselves and their family by taking this small, yet significant step. It can encourage the habit of saving and provide them access to other financial and investment products like provident fund investments and UPI transactions that will eventually grow their finances. IDFC FIRST Bank believes in banking for all, and with fully-digital account opening, we want to open our banking options to as many people as possible.

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.