Homemakers should have a Savings Account. Here’s why

Homemakers handle money more frequently than most others. A savings account will empower them with the right tools to manage their finances more effectively. Here’s how you can go about it

When was the last time you paid your online grocery bill with cash? Or settled your Wi-Fi bill with paper money? Over the past couple of years, many financial transactions have become contactless and cashless, thanks to the digitalisation of transactions in India.

1. The increasing digitalisation of transactions

A homemaker who used to visit the neighbourhood grocery store now gets home-delivered items and prefers to pay for them via a digital platform. Even while shopping physically in a store, people increasingly prefer to use digital platforms for payment.

To cope with the changing times, all homemakers need to open a savings bank account. There are savings accounts with customised features to suit their needs – such as IDFC FIRST Bank’s FIRST Power Savings Account, which is specifically designed to cater to the needs of women. Such accounts offer wellness and lifestyle-related benefits along with the core product.

2. Perfecting the art of money management

Although homemakers do not make money of their own, most of them prudently manage the monthly budget and create savings that are usually tucked away in the house. Some savings accounts can help you gain impressive returns. For example, IDFC FIRST Bank’s savings account can earn you up to 7% p.a. in interest on a monthly compounding basis. This amount can be deposited into a bank savings account every month. This can help create a substantial amount over the long term. 

3. Being self-employed or a freelancer

Many homemakers pursue a home business or undertake freelance projects to keep themselves engaged and earn money. Typically, such payments are made via digital transfer, which requires them to have a savings bank account. 

4. Automation of repeated payments

Keeping track of bills and monthly payments can be cumbersome. It is much easier to enable auto-pay for recurring bills such as phone, electricity, gas, etc. Without a savings account, it is impossible to avail of this benefit. The electronic auto-debit will ensure that there is no lapse in payment, thereby ensuring that there are no penalties to be paid. 

The same arrangement can be extended to investments as well. Homemakers with cash in hand generally understand the benefit of investing their money to earn returns. However, they may be tempted to venture into dubious financial products and fraudulent chit fund schemes. A savings bank account empowers them to participate in financial instruments that suit their risk-return demeanour. 

5. Inclusion within the formal financial fold

The government’s PM Jan-Dhan Yojana was launched to bring every citizen within the ambit of the formal banking system. An unprecedented number of savings accounts was opened during this drive. Given the ongoing effort to offer every Indian equitable access to relevant scheme benefits/credit systems in the economy, it is only appropriate for a homemaker to take advantage of this situation. Thanks to digitalisation, IDFC FIRST Bank has made the entire account opening process easy. Opening a savings bank account with IDFC FIRST Bank is entirely cashless, paperless, and contactless.

6. Benefiting from a zero-balance savings account

Worried about having to maintain a certain minimum balance at all times in your savings bank account to avoid penalties? Relax. Most financial institutions now offer zero-balance savings accounts, where you can deposit and withdraw as you wish without the hassle of maintaining a minimum balance. IDFC FIRST Bank’s Pratham Savings Account is a zero-balance savings account whose sole eligibility criterion is Indian citizenship. This could be ideal for women who do not have enough funds at their disposal to make substantial savings. 

7. Avoiding losses due to unprecedented events

If there’s one thing demonetisation taught us, it was not to keep cash stashed in the house. Many women who had saved currency notes in the proverbial cookie jar could not manage to convert them to the new currency within the stipulated time. Money kept in a bank account is unaffected by such sudden moves.

Women are the lifeline for any household, so empowering them with the right tools to manage their finances better can only enhance their overall efficiency. This will also act as a nudge to instil confidence in women, equipping them to face challenges in the future. One can further track all their banking needs with a mobile app like the IDFC FIRST Banking App

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.