The savings account is a type of account provided by banks where you could first deposit your money and then withdraw it as and when you need it. You can have an account of your withdrawals and access the banks’ webpage for any of your bank-related requirements.

This type of account is accessible to any individual above 18 years of age. For children below the age of 18 years, the account needs to be a joint account along with a parent/guardian above the age of 18 years. You would require age proof, address proof, and fill the KYC documents to open the account. Here we will look at 5 benefits of opening a savings account.

1.It provides interest on your savings

Depositing money in a savings account provides you with interest on your savings deposited in your account. The interest is generated per annum, which means that you would receive the interest amount per annum. Hence, every individual should make it a regular practice to deposit your money in your account whenever possible.

2.It is convenient to use

Having to use a savings account is very convenient. You could deposit the money/cheque at the nearest branch and it would reflect the amount in your account. You could withdraw money whenever needed at the nearest ATM available. You don’t need to carry a huge amount of money with you while traveling; hence, the fear of theft is reduced to a great extent. You could transfer money from one account to another using the banking app or from the bank’s website. Various other options are available on the banking websites such as applying for loans, opening trading accounts, etc.

3.It is very safe & reliable

Opening a savings account in the bank is very safe and reliable. You could deposit your money in the account and have no worries about the safety of your money. You could rely on the bank that they would not perform any kind of theft in the accounts of the people and would keep their money safe as they have security around the clock.

4.You could make online payments

With the global pandemic setting loose last year, a lot of people have opted to have contactless payments as their primary mode of payment. The opening of the savings account offers you the option of completing your payments online on any of the online payment services available in the market. Most of the banks also have their banking app from which you could complete the payment.

5.It provides additional benefits

Various additional benefits are provided for opening a savings account by different banks in the market. Various banks provide cash backs on selected purchases or discounts on purchases. A few banks also provide you with special limit credit cards which could be availed by opening an account in that particular bank. Some other additional benefits may include access to airport lounges, special limit debit cards, etc.

We hope that this article proved to be helpful. All the best!

Read More:- 4 Steps to Open a Bank Account Online