Savings Account: A gateway to your financial ecosystem

A savings account is one of the most common and simplest financial tools. For many people, opening a savings account is their introduction to the banking system. A savings account forms the hub of an individual’s financial ecosystem, facilitating various other financial tools and transactions. Further, as the name suggests, a savings account fosters the saving habit, and paying out interest on the amount kept in them, allows a depositor’s money to earn more money. 

If you haven’t opened a savings account yet, here are some excellent reasons to do so:

1. Steady income generation

Savings accounts, unlike current accounts, offer interest on the balance kept in them. Different banks offer different rates of interest calculated at varying intervals of time, usually quarterly. IDFC FIRST Bank offers interest of up to 7% per annum on savings accounts, with interest credited monthly for greater compounding benefit (use this calculator to see how much wealth creation can happen with interest from a savings account). The interest generated by a savings account becomes an additional source of income for the depositor. When compounded over several years, it can lead to the accumulation of a significant sum of money. Additionally, interest earned on a savings account is deductible from an income tax perspective up to a cap of INR 10,000.

2. Safe and secure fund storage

A savings account is a safe place for individuals to park their funds. The funds kept in a savings account will remain there unless deliberately withdrawn by the account holder. Banks are legally required to ensure the safety of savings account deposits. In India, all savings account deposits are automatically insured up to INR 1 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC). 

3. Multiple value-added services

Several banks offer value-added services with savings accounts, like the provision of a debit-cum-ATM card, cheque book, insurance cover, etc. IDFC FIRST Bank savings accounts come bundled with debit-cum-ATM cards, cheque books, passbooks, and free personal accident and air accident insurance coverage.

4. Gateway to financial tools

A savings account can become the centre of your financial ecosystem, especially from a digital finance perspective. You can link savings accounts to insurance policies, digital payment tools like UPI, Demat accounts, auto-debit transactions, credit cards, etc. A savings account can serve as a hub through which your money flows, as it moves between investments and from income to expenditure or savings. 

A savings account has become an indispensable part of an individual’s financial ecosystem in these modern times. IDFC FIRST Bank offers some of the most generous terms and benefits when it comes to savings accounts. The application process is quick and fully digital. To know more or to apply for a savings account with us, click here.

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.