What are some of the reasons to open a savings account?

For carrying out transactions  with a  bank, it is important for you to have an account in it. However, it is also important to remember that just signing up for a bank account is not enough. It is equally important that you sign up for the type of account that suits your requirements the best. Almost all banks across India are known for offering these different types of accounts.

What are savings accounts?
 

Savings Accounts in simple terms can be defined as accounts that are intended to help one to save money. One of the key benefits of a savings account is that anyone can sign up for opening it. All that’s expected of the prospective account holder is to submit the required documents.Submitting these documents is mandatory for opening a savings account.

What are the benefits associated with these accounts?
 

Some of the advantages of a savings account are listed below:

· They can serve as a safeguard for your money
 

With  a savings account, it is easier for you to continue saving money for your post-retirement life and keep adequate liquidity for the present to meet exigencies if required at the same time.  Apart from helping you to save money for the future, a savings account can also help you to safeguard your money from your own uncontrolled spending urges. A savings account is known for providing a safe avenue to park your funds and even earn in the form of interest at the same time.

· It can help in saving money for future goals
 

Another reason to consider signing up for a savings account in India is that it can help you in managing your finances in the long run. In case you ever wanted to save up for a future goal, for instance, purchase a home, or a car or fund overseas education, it might be prudent for you to start a savings account. Having a savings account in your name might have the capacity of helping you to make such purchases. If it ever happened that you need a hefty loan, a savings account might help you with loan repayment and may even help in reducing the burden of the loan amount required.

Please make this generic and do not name only these documents as there are other documents also which are accepted as part of OVD

· You can earn attractive interest rates through savings accounts
 

Parking your monthly earnings in a savings account might help you in fetching attractive interest rates. IDFC FIRST Bank, for example, is known for offering an attractive savings account interest rate. Depositing the income from full-time employment in a savings account might also help you in building a retirement fund. The interest rate offered by a savings account is vital. That’s because it has the capacity of helping you to determine how much you can earn on parked money.

· These accounts can help in maintaining an emergency fund
 

The pandemic has shown people why it is important for you to have a strong financial footing. If you ever got sick, it might cost you a fortune. This is the reason why an emergency fund has become vital for every household. And the most suitable place for safeguarding the emergency fund is a savings account.

· Savings accounts might help in securing your family’s future
 

Having a savings account is considered an assured way to have a secure future. In simple terms, a savings account is known for serving as the silent guardian that looks out for you and your family, in times of need.

A savings account is a suitable instrument  to park your hard-earned money and keep it from devaluating due to inflation. It also opens ways to access various banking products and services such as deposit schemes and investments as well as facilitates online monetary transactions. . For example, the Savings Account offered by IDFC FIRST Bank is known for offering free & unlimited ATM withdrawals. These are facilities that you can look out for while picking a savings account. 

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.